A Market Has ________ If It Can Absorb Large Orders

question 89

Multiple Choice

A market has ________ if it can absorb large orders without disrupting prices; it has ___________ if it has many trades.

• A) depth, breadth
• B) breadth, depth
• C) liquidity, quick execution
• D) quick execution, liquidity

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Money Market Accounts

Interest-bearing accounts offered by financial institutions, combining the benefits of both savings and checking accounts, typically with higher interest rates.

Commercial Paper

An unsecured, short-term debt instrument issued by companies to finance their operational expenses.

U.S. Treasury Bills

Short-term government securities issued by the U.S. Treasury with a maturity of one year or less, often used as a risk-free investment option.