Which One of the Following Is a Source of Profit

question 37

Multiple Choice

Which one of the following is a source of profit for a swap dealer?

• A) Commission charged on the sale of bonds
• B) Bid-ask spread
• C) Margin account
• D)Option premium

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Definitions:

Units

The standard measurement or quantity of a product, used in various contexts to quantify inventory, production, and sales.

Monopolistic Competitors

Firms that have many competitors but distinguish themselves through product differentiation, allowing them some control over their prices.

Average Total Cost Curves

A graphical representation showing the average cost per unit of output at different levels of production.

Monopolistic Competitor

A firm operating in a market with many competitors but differentiating its product or services from others, thus having some degree of market power.