Which of the Following Is a Main Characteristic of Exchanges

question 132

Multiple Choice

Which of the following is a main characteristic of exchanges in the market system?

• A) Decisions to trade are based on individuals' self interest.
• B) Exchanges are highly regulated by the government.
• C) Sellers hire economists to determine the market clearing price.
• D) Exchanges are part of the legislative imperative.

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Definitions:

Bank Accounts

Financial accounts held by individuals or entities with a financial institution, allowing for the deposit and withdrawal of money.

Insurance Policies

Contracts between an insurer and a policyholder that specify the terms under which the insurer agrees to indemnify the policyholder against financial losses from specific eventualities.

Eminent Domain

The power of a government to take private property for public use, with compensation to the owner.

Lost

Refers to an item that has been misplaced and whose whereabouts are unknown.