Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 55: Market Organization and Structure
LOS k: Describe the characteristics of a well-functioning financial system.
Which of the following is least likely a characteristic of a well-functioning market?
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A) |
Reliable information is available on price and volume. | |
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B) |
Prices change significantly from one transaction to the next. | |
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C) |
Prices adjust quickly when new information becomes available. | |
In a well-functioning market, prices should not typically change much from one transaction to the next because many buyers and sellers are willing to trade at prices near the current price. Characteristics of a well-functioning market include availability of reliable information on prices and transaction volume; liquidity (marketability and price continuity); prices that react quickly to new information; and low transactions costs. | 
发表于 2011-3-29 16:17
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