Which One of the Following Statements Is NOT True About

question 16

Multiple Choice

Which one of the following statements is NOT true about broker markets?

• A) Brokers bring buyers and sellers together to earn a fee, called a commission.
• B) Brokers' extensive contacts provide them with a pool of price information that individual investors could not economically duplicate themselves.
• C) Investors have an incentive to hire a broker because they charge a commission that is less than the cost of direct search.
• D) Brokers can guarantee an order because they have an inventory of securities.

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Definitions:

Actor-Observer Effect

A bias in attribution where individuals attribute their own behaviors to situational factors but others' behaviors to personal characteristics.

Actor-Observer Asymmetries

The tendency for individuals to attribute their own actions to situational factors while attributing others' actions to intrinsic characteristics.

Interpersonal Relationships

Emotional or social connections between two or more people that may vary in duration and significance.

Covariation Principle

The tendency to see a causal relationship between an event and an outcome when they happen at the same time.