In a Market-Based System

question 16

Multiple Choice

In a market-based system:

• A)banks actively monitor corporations and are often involved in long-term strategic decisions.
• B)banks play a major role in facilitating the flow of money between investors with surplus cash and organizations that require funding.
• C)managers of companies may have longer investment horizons and be less willing to take risks.
• D)the variety of security instruments that are actively traded in the system will improve a firm?s risk management activities.

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Definitions:

Startle Reflex

An automatic response to sudden, unexpected stimuli, such as loud noises, that is designed to protect the body from potential threats.

Fear

A disagreeable feeling resulting from the conviction that a person or entity poses a risk, may inflict harm, or constitutes a menace.

Emotional Expression

The way in which a person outwardly shows or communicates their emotions, through facial expressions, body language, or verbal communication.

Decision Making

The method of selection that involves pinpointing what decision needs to be made, collecting relevant information, and evaluating different potential solutions.