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Financial Markets Provide Three Economic Functions

Question 17

Multiple Choice

Financial markets provide three economic functions. Which of the below is NOT one of these?


A) The interactions of buyers and sellers in a financial market determine the price of the traded asset.
B) Financial markets provide a mechanism for an investor to sell a financial asset.
C) Financial markets increases the cost of transacting.
D) The interactions of buyers and sellers in a financial market determine the required return on a financial asset.

Correct Answer:

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