- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 1. The Functions of the Financial System
CFA Practice Question
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.
Correct Answer: C
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 |