CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

The functions of the financial system include everything below except ______

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
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