Households

question 133

Multiple Choice

Households

• A) have no influence on the circular flow in a market economy.
• B) purchase resources in the factor market.
• C) sell goods in the product market.
• D) sell resources in the factor market.

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Definitions:

ECNs

Electronic communication networks that facilitate the buying and selling of securities outside traditional stock exchanges.

Transactions Costs

Expenses incurred when buying or selling securities, including broker commissions and spreads.

Traditional Markets

Markets that refer to established financial exchange venues and systems where stocks, bonds, and other securities are traded.

Initial Margin

This refers to the minimum amount of capital required to enter into a position in the securities or futures market, serving as a deposit to cover potential losses.