Which of the Following Statements Is True About Dealer Markets

question 56

Multiple Choice

Which of the following statements is true about dealer markets?

• A) NYSE is the best-known example of a dealer market.
• B) A dealer market involves time-consuming search for a fair deal.
• C) The advantage of a dealer over a brokered market is that brokers cannot guarantee that an order will be executed promptly, while dealers can, because they have an inventory of securities.
• D) All of the above are true of dealer markets.

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Definitions:

Degree of Rivalry

The intensity of competition among firms within the same industry or market.

Bargaining Power of Buyers

The ability of buyers to influence the price and terms of purchase due to their leverage over sellers.

Economic

Related to the production, consumption, and transfer of wealth within a community or society.

Interest Rate

The amount of money paid for the use of borrowed funds.