Which of the Following Statements Regarding Discount Brokers Is True

question 2

Multiple Choice

Which of the following statements regarding discount brokers is true?

• A) Discount brokers do not offer access to foreign securities.
• B) Discount brokers only execute orders on stock transactions.
• C) Discount brokers frequently offer limited investment advice.
• D) Discount brokers do not offer SIPC protection.

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Definitions:

Compensatory Reaction

A psychological and physiological concept where the body automatically adjusts to counterbalance or mitigate any changes or effects it experiences.

Hypodermic Needle

A slender, hollow needle used for injections or extractions of fluids, typically attached to a syringe.

Law of Effect

A psychological principle that behaviors followed by pleasant outcomes are likely to be repeated, while those followed by unpleasant outcomes are less likely to be repeated.

Rewarded Responses

Behaviors or actions that receive positive reinforcement, which increases the likelihood of the behavior being repeated in the future.