Which of the Following Statements Is True of Market Makers

question 29

Multiple Choice

Which of the following statements is true of market makers?

• A) Commercial banks are not allowed function as market makers.
• B) Market makers are large investors who drive an economy.
• C) Market makers facilitate only equity based loans.
• D) Market makers connect investors and borrowers in a capital market.

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Definitions:

Legal Actions

Legal actions are formal steps taken within the judicial system to enforce or defend rights, often involving lawsuits or proceedings in court.

Duress

A situation where an individual performs an act as a result of violence, threat, or other pressure against them.

Economic Duress

Refers to a situation where one party compels another to agree to a contract under threats or pressure that deprive the victim of their free will.

Misrepresentations

False statements or lies that can affect contracts and agreements, leading to possible legal action for rescission or damages.