Function of financial markets

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Reference no: EM132057400

1. Which statement is correct?

A. In a financial investment, the net present value is zero; but in a physical investment, the net present value may be other than zero.

B. In a physical investment, the net present value is zero; but in a financial investment, the net present value may be other than zero.

C. Both financial investments and physical investments can have net present values other than zero.

D. Both financial and physical investments must have net present values that are zero.

2. Which of the following is not a function of financial markets?

A. Price setting

B. Asset valuation

C. Arbitrage

D. Raising capital

E. Private transactions

F. Investing

G. Risk management

Reference no: EM132057400

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