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Basic Question 0 of 14

The functions of the financial system include everything below except ______

A. helping some borrowers get capital for their very risky projects.
B. helping information-motivated traders trade in order to profit quickly from information.
C. establishing price floors or ceilings to prevent security prices from being too low or too high.

User Contributed Comments 4

User Comment
johntan1979 Is C even legal?
To-be-CFA @Johntan1979: It's legal, though not that prevalent.
farhan92 e.g minimum unit price on alcohol
ascruggs92 C is done by the government (i.e. currency pegs), not the financial system. Financial system will let things go to zero if nobody buys
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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

contrast weak-form, semi-strong-form, and strong-form market efficiency

explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management

CFA® 2026 Level I Curriculum, Volume 3, Module 3.