Which of the Following Statements Is FALSE

question 31

Multiple Choice

Which of the following statements is FALSE?

• A) On Nasdaq, stocks can and do have multiple market makers who compete with each other. Each market maker must post bid and ask prices in the Nasdaq network where they can be viewed by all participants.
• B) Bid prices exceed ask prices.
• C) Because customers always buy at the ask and sell at the bid, the bid-ask spread is a transaction cost investors have to pay in order to trade.
• D) On the floor of the NYSE, market makers (known on the NYSE as specialists) match buyers and sellers.

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Definitions:

Melanocyte Stimulating Hormone

A hormone involved in pigmentation, produced by the pituitary gland that triggers melanocytes to produce melanin.

Sella Turcica

A saddle-shaped depression in the sphenoid bone of the skull that houses the pituitary gland.

Pituitary

A small gland at the base of the brain, important for controlling growth, metabolism, and the function of other glands in the endocrine system.

Hypothalamus

A region of the brain below the thalamus that coordinates the autonomic nervous system and the activity of the pituitary, controlling body temperature, hunger, and other essential functions.