It Is Important That a Secondary Market Be Liquid So

question 22

Multiple Choice

It is important that a secondary market be liquid so that:

• A) loans are guaranteed.
• B) large transactions will not have an impact on the price.
• C) expensive dealers are not required.
• D) all of the above.

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Definitions:

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent political units.

First Amendment

A part of the U.S. Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.

Democratic Society

A society where power is held by the people, either directly or through elected representatives, ensuring freedoms and equality.

Profit Motive

The drive or incentive for individuals and businesses to achieve financial gain, often considered a fundamental principle of capitalism.