American_Bankers_Association
CTFA · Question #225
How are funds allocated efficiently in a market economy?
The correct answer is B. The economic unit that is willing to pay the highest expected return receives the funds. See the full explanation below for the reasoning.
Investment Management
Question
How are funds allocated efficiently in a market economy?
Options
- AThe most powerful economic unit receives the funds
- BThe economic unit that is willing to pay the highest expected return receives the funds
- CThe economic unit that considers itself most in need of funds receives them
- DReceipt of the funds is rotated so that each economic unit can receive them in turn
How the community answered
(57 responses)- A5% (3)
- B81% (46)
- C11% (6)
- D4% (2)
Topics
#capital allocation#market economy#fund distribution
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