Which of the following statements is true with respect to financial and product markets?
A) In product markets, companies rarely find investments that yield a positive NPV.
B) Financial markets face fast-moving competition.
C) Competition in financial markets is not as thorough as in product markets.
D) Competition in product markets is more intense than in financial markets.

Question

Quizplus · Accepted Answer

Financial markets face fast-moving competition, with prices and information changing rapidly. Product markets also face competition, but companies are more likely to find investments that yield a positive NPV. Competition in both markets is thorough, but the nature of the competition differs.

Which of the Following Statements Is True with Respect to Financial