When an Investment Bank Commits Its Own Funds to Take

question 4

Multiple Choice

When an investment bank commits its own funds to take a risk position in an underlying security, it is known as:

• A) underwriting.
• B) market making.
• C) proprietary trading.
• D) organizing a market.
• E) brokering.

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Definitions:

Primary Tastes

The basic groupings of taste sensations, traditionally categorized into sweet, sour, salty, bitter, and umami.

Spicy

A flavor profile that includes a burning or tingling sensation on the palate, usually derived from chemicals in spices and hot peppers.

Frequency Theory

A theory of hearing which suggests that the rate of nerve impulses traveling up the auditory nerve matches the frequency of a tone, enabling us to detect its pitch.

Basilar Membrane

A structure in the cochlea of the inner ear that vibrates in response to sound, helping to convert sound waves into neural signals.