The Party Who Serves as a Dealer for a Few

question 106

Multiple Choice

The party who serves as a dealer for a few securities on an exchange floor and is obligated to maintain an orderly market for those securities is called a:

• A)floor trader.
• B)designated market maker.
• C)floor broker.
• D)member.
• E)house broker.

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Definitions:

Interest Rate Differential

The difference in interest rates between two distinct economic or financial instruments.

Exchange Rate

The price of one currency in terms of another, crucial in international finance as it determines how much one currency is worth in another.

Political Risk

The risk of losing money due to changes in a country's political environment or policy.