What Is the Primary Role of a Designated Market Maker

question 55

Multiple Choice

What is the primary role of a designated market maker (DMM) ?

• A)Provide a two-sided market
• B)Act as a floor broker
• C)Function as a supplementary liquidity provider
• D)Act as a one-sided trader
• E)Process only electronic trades

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Definitions:

Test Statistic

A standardized value used in hypothesis testing to determine how far a sample statistic diverges from what is assumed in the null hypothesis.

Sample Evidence

Data collected from a sample that is used to make inferences or conclusions about a larger population.

Level Of Significance

A predetermined threshold of probability below which the null hypothesis is rejected in hypothesis testing, typically set at 0.05 (5%).

Null Hypothesis

A hypothesis stating there is no significant difference or effect, or a specified parameter equals a certain value, in the population being studied.