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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 |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain the main functions of the financial system
CFA® 2024 Level I Curriculum, Volume 3, Module 1.