Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A) Many economists believe that speculators generally play a beneficial role in markets by moderating price swings.
• B) Speculators often play a beneficial role by adding liquidity to the markets.
• C) In well-functioning futures markets,hedgers buy insurance against adverse price movements and speculators are among the sellers of such insurance,bearing the risk that adverse price movements will not occur.
• D) Speculators are always detrimental to any market in which they participate.
• E) In well-functioning markets,speculators can help the process of price discovery.

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Definitions:

Null Hypothesis

A statement in statistical analysis that implies no effect or no difference, and serves as the starting assumption for testing.

College Location

The geographical setting or campus where a college or university is situated, which can influence campus life and opportunities.

Gender

A characteristic of individuals, typically used as a categorical variable in research, that denotes male, female, or other identities.

Null Hypothesis

The default assumption that there is no significant difference or relationship between specified populations, any observed effect is due to sampling or experimental error.