Dealers ________

question 13

Multiple Choice

Dealers ________.

• A) operate as agents, not principals.
• B) continually provide bids and offer quotes to buy for or sell from borrowed inventories and profit from the spread between their bid and offer quotes.
• C) compete with each other in their bids and offers.
• D) have a perspective that views the "best" market as the highest bid and lowest offer.

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Definitions:

Labor

The human effort, both physical and mental, used in the production process.

Capital

Financial assets or the financial value of assets, such as cash and securities; also, factories, machinery, and equipment used to produce goods or services.

Production Outcomes

Production outcomes refer to the results of the production process, quantified in terms of quantity, quality, and efficiency of the goods or services produced.

Stocks

Stocks represent shares of ownership in a company, giving shareholders a claim on part of the company's assets and earnings.