What Is the Primary Role of a Designated Market Maker

question 66

Multiple Choice

What is the primary role of a designated market maker (DMM) ?

• A)Providing a two-sided market
• B)Acting as a floor broker
• C)Functioning as a supplementary liquidity provider
• D)Acting as a one-sided trader
• E)Handling only electronic trades

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Definitions:

Stimulus

A stimulus is something that causes a response or reaction in an organism or in any of its parts.

Just Noticeable Difference

The smallest difference in stimulation that a person can detect 50% of the time, also known as the threshold of sensation.

Sensory Adaptation

The process by which sensory receptors change their sensitivity to a stimulus over time, often resulting in diminished sensitivity to a constant stimulus.

Constant Movement

Continuous physical activity or motion without stopping.