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Basic Question 4 of 7
The functions of the financial system include everything below except ______
B. helping information-motivated traders trade in order to profit quickly from information.
C. establishing price floors or ceilings to prevent security prices from being too low or too high.
A. helping some borrowers get capital for their very risky projects.
B. helping information-motivated traders trade in order to profit quickly from information.
C. establishing price floors or ceilings to prevent security prices from being too low or too high.
User Contributed Comments 4
| User | Comment |
|---|---|
| johntan1979 | Is C even legal? |
| To-be-CFA | @Johntan1979: It's legal, though not that prevalent. |
| farhan92 | e.g minimum unit price on alcohol |
| ascruggs92 | C is done by the government (i.e. currency pegs), not the financial system. Financial system will let things go to zero if nobody buys |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain the main functions of the financial system
CFA® 2025 Level I Curriculum, Volume 3, Module 1.