Brokers

question 46

Multiple Choice

Brokers:

• A)earn a spread by buying securities at a low price and selling them at a higher price
• B)operate in over-the-counter markets
• C)charge a commission on the trades they perform
• D)can be described as 'market makers'.
• E)All of these.

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Definitions:

Ego Function

Psychological processes associated with the self that are responsible for perception, judgment, tolerance of ambiguity, and reality testing.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby avoiding a potentially distressing truth.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.