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:

Customs

The official procedures and regulations governing the import and export of goods, or the habits and traditions of a particular group or society.

Multiple Causes

Multiple causes refer to the concept that most events or phenomena result from a complex interaction of various factors, rather than a single cause.

Objective Cause

An event or factor that independently exists and leads to a specific outcome or effect.

Subjective Causes

Factors perceived or experienced from an individual's own perspective, which can influence their thoughts, feelings, or behaviors.