In the Context of Acquiring Financial Assets, Which of the Following

question 37

Multiple Choice

In the context of acquiring financial assets, which of the following is a result of competition among brokerage firms?

• A) Many full-service firms have lowered their commissions, while many discount brokers have begun offering investment advice and other services.
• B) Most full-service firms do not charge fees for the services they provide, while most discount brokerage firms charge commissions based on the dollar value of the orders their clients place.
• C) The commissions and fees charged by discount brokers are usually significantly higher, while full-service brokers charge flat fees of a few dollars per trade for simple transactions.
• D) Discount brokers provide a wide range of services-such as research to identify good investment opportunities, financial planning, and tax advice, while full-service brokers restrict themselves to buying and selling securities for their clients.

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Definitions:

Civil Rights Act

The Civil Rights Act is a landmark piece of legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin.

Quid Pro Quo

A Latin phrase meaning "something for something," indicating an exchange of goods or services, where one transfer is contingent upon the other.

Harassment

Any unwanted physical or verbal behavior that offends or humiliates an individual, often occurring in the workplace or social settings.

Sexual Demands

Coercive or inappropriate requests or pressures for sexual activities or favors.