Why do financial markets depend on accurate accounting and disclosure practices?
What will be an ideal response?
Investors in primary and secondary markets make decisions on which firms to invest in, when to invest, how much to invest, and when to sell based on information about firms. If the information is misleading, investors will invest less or, possibly, stop investing. Capital markets depend on accurate information and can function poorly when information is misleading.
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The __________________________: is a general method for appraising all types of properties involves comparing the subject property with comparable properties (similar properties) that have sold recently.
Fill in the blank(s) with the appropriate word(s).
Ordinarily the Fed lends money only to banks, but during the Great Recession of 2007-2009 the Fed extended its lender-of-last-resort role to other financial institutions. These institutions included
A) securities dealers. B) investment banks. C) high-quality corporations. D) all of the above