Which One of the Following Statements Concerning Dealers and Brokers

question 43

Multiple Choice

Which one of the following statements concerning dealers and brokers in the financial markets is correct?

• A)A broker never assumes ownership of the securities being traded.
• B)A dealer pays the ask price when purchasing securities.
• C)A broker earns income in the form of a bid-ask spread.
• D)A dealer in market securities arranges sales between buyers and sellers for a fee.
• E)A broker deals solely in the primary market.

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Definitions:

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express ideas, thoughts, feelings, etc., to someone else.

Contact Hypothesis

A theory suggesting that under appropriate conditions interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by prejudice against other groups.

Intercultural Communication

The process by which people from different cultural backgrounds attempt to share meaning and understand each other.