An Attempt by a Market Maker to Earn a Profit

question 52

Multiple Choice

An attempt by a market maker to earn a profit on the price movements of securities by taking inventory positions for its own account is called

• A)risk arbitrage.
• B)an agency transaction.
• C)best efforts underwriting.
• D)pure arbitrage.
• E)a principal transaction.

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Definitions:

Economic Growth

The increase in the production of goods and services in an economy over a period of time.

Microeconomics

Microeconomics is the branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders.

Rate Of Inflation

The pace at which the general level of prices for goods and services is rising, eroding purchasing power.

Macroeconomics

The branch of economics that studies overall economic factors, such as national productivity, total national income, and the overall levels of prices and employment.