- 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 financial system facilitates borrowing by ______
II. the government establishing bankruptcy codes and courts.
III. arranging loans with low costs.
I. credit bureaus collecting and disseminating information that lenders need to know about borrowers.
II. the government establishing bankruptcy codes and courts.
III. arranging loans with low costs.
Correct Answer: I, II and III
User Contributed Comments 4
| User | Comment |
|---|---|
| vikas259 | why III. |
| mhanazi123 | Information is available at no cost |
| cgalarzac | III it's because the lower the costs, you can lend at lower rates thus more people will be willing to borrow money. |
| ibrahim18 | why II. What had bankruptcy codes and courts have to do with this? |