The distinguishing feature of a well-functioning financial market is the
A) continual increase in the liquidity of most assets.
B) continual reduction in the riskiness of most assets.
C) increased ease of converting common stocks into bonds.
D) incorporation of available information into asset prices.
D
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Which of the following changes would NOT shift the aggregate demand curve?
A) a change in fiscal policy B) a change in monetary policy C) a change in expectations about future income D) an increase in technology
One reason college students do not study enough to get high grades is that they are unrealistic about their future behavior
Indicate whether the statement is true or false
Capital rationing refers to
A) setting a minimum acceptable rate of return for a capital outlay. B) selecting among profitable capital outlays when there are constraints on the funds available. C) determining the maximum price to pay for a capital product. D) None of the above
When the marginal cost curve of the monopolist shifts upward, there will be
A. an increase in both price and quantity. B. a decrease in price and in marginal revenue. C. a decrease in quantity and a decrease in marginal revenue. D. an increase in price but a decrease in quantity.