Which of the Following Is NOT Correct? Price Floors and Price

question 86

Multiple Choice

Which of the following is NOT correct? Price floors and price ceilings:

• A) are typically instituted by government.
• B) can interfere with the process leading to market equilibrium.
• C) can result in surpluses or shortages.
• D) help a market balance the interests of sellers and buyers.

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Definitions:

Risk Management

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Passive Investment

An investment strategy involving minimal buying and selling actions, typically focused on long-term investment in index funds and ETFs.

Target Date Fund

A mutual fund designed to adjust its asset allocation towards more conservative investments as it approaches a specific target date.

Variable Annuity

An insurance product that provides a retirement income and whose value fluctuates with the performance of the investment options chosen by the holder.