If Several Banks Hit a Broker Simultaneously for an Amount

question 458

Multiple Choice

If several banks hit a broker simultaneously for an amount greater than the amount for which the price was shown:

• A) no transaction is done
• B) the broker has to honor each and every amount hit
• C) the broker has to split the amount among the banks on a pro rata basis
• D) the broker may freely choose the bank(s) he will deal with

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Definitions:

Economic Output

The total value of all goods and services produced within an economy over a specific time period.

Potentially Efficient

A condition where resources could be allocated in a way that maximizes the net benefits to society, although it may not necessarily be achieved.

Empirical Economics

The study of economics based on the collection and analysis of data, emphasizing the role of observation and experimentation in understanding economic principles.

Economic Theories

These are frameworks or models that explain how economic processes work and predict how economies will respond to certain actions.