The Bid-Ask Spread Exists Because of ________

question 7

Multiple Choice

The bid-ask spread exists because of ________.

• A) market inefficiencies
• B) discontinuities in the markets
• C) the need for dealers to cover expenses and make a profit
• D) lack of trading in thin markets

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Definitions:

Friendship

A close and trusted relationship between two or more people, typically characterized by mutual affection and support.

Prejudged

To make a decision or form an opinion about something or someone in advance, without full examination or knowledge.

Worthy of Friendship

A philosophical concept referring to qualities that make someone a good friend.

Valid Argument

An argument wherein if the premises are true, the conclusion necessarily follows.