- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 8. Well-Functioning Financial Systems
CFA Practice Question
If there are well-developed markets that trade instruments that help people solve their financial problems, we say the financial system ______
B. is operationally efficient.
C. is informationally efficient.
A. has complete markets.
B. is operationally efficient.
C. is informationally efficient.
Correct Answer: A
The financial system has complete markets if the assets and contracts needed to solve financial problems are available to trade.
User Contributed Comments 1
| User | Comment |
|---|---|
| johntan1979 | Complete markets: The instruments to solve investment and risk management problems are available to trade. |