Which of the Following Is NOT an Advantage of Online

question 73

Multiple Choice

Which of the following is NOT an advantage of online bond brokerage services?

• A)Pricing is more transparent because investors can easily compare bid and ask spreads.
• B)Some services charge commissions, which may be more easily understood than bid and ask spreads.
• C)Some brokers have narrowed their spreads so that they do not lose business to competitors.
• D)All of these are advantages of online bond brokerage services.

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Definitions:

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Elastic

A characteristic of supply or demand that indicates a high responsiveness to changes in price.

Monopolistic Competitor

A firm operating in a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and price setting.

Excess Capacity

A situation in which a company can produce more goods or services than currently demanded, due to underused resources.