An efficient market is a market that establishes correct prices ...

[Brittanyd9008]

An efficient market is a market that establishes correct prices for the securities that firms sell and allocates funds to their most productive use as a result of the intense competition among investors.
 
  Indicate whether the statement is true or false

Question 2

Which of the following is NOT a function of a financial intermediary in the lending/borrowing process?
 
  A) To help establish terms of the lending/borrowing agreement
  B) To match the borrower and the lender
  C) To bear the risk that the borrower will not repay
  D) All of the above are functions of a financial intermediary.

[cupcake16]

Answer to Question 1

TRUE

Answer to Question 2

Answer: D