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Multiple Choice
The internet has affected the financial markets by:
A
eliminating all forms of market risk
B
making financial markets completely immune to speculation
C
removing the need for any government regulation
D
increasing the speed and accessibility of trading information
Verified step by step guidance
1
Understand the role of the internet in financial markets: it primarily affects how information is disseminated and how quickly transactions can be executed.
Recall that market risk refers to the uncertainty inherent in the market due to factors like price fluctuations, which cannot be completely eliminated by technology.
Recognize that speculation is a fundamental part of financial markets, and the internet does not make markets immune to it; rather, it may increase speculative activities by providing faster information.
Consider the role of government regulation, which remains necessary to ensure market fairness and stability despite technological advances.
Conclude that the internet's main impact is to increase the speed and accessibility of trading information, improving market efficiency but not eliminating risks or the need for regulation.