The Bid-Ask Spread Exists Because of ________

question 7

Multiple Choice

The bid-ask spread exists because of ________.

• A) market inefficiencies
• B) discontinuities in the markets
• C) the need for dealers to cover expenses and make a profit
• D) lack of trading in thin markets

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Definitions:

Organic Product

A compound containing carbon atoms that has been produced through chemical reactions involving organic molecules.

β-Ocimene

An isomer of ocimene, which is a monoterpene showing a double bond at the beta position, found in various plant oils and used in fragrances.

Natural Product

A chemical compound or substance produced by a living organism found in nature.

Empirical Formula

The simplest expression of a compound's composition, showing the relative numbers of atoms of each type without structural information.