A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis is a/an:
A)transaction market.
B)information market.
C)active market.
D)inactive market.

Question

Quizplus · Accepted Answer

An active market is a market where the asset or liability is traded frequently enough and in sufficient volumes to provide pricing information on an ongoing basis. In an active market, buyers and sellers can easily find each other, and transactions can be completed quickly and at fair prices. This contrasts with inactive markets, where there are fewer buyers and sellers, and pricing information may be less reliable. A transaction market is a broader term that can refer to any marketplace where transactions take place, including both active and inactive markets. An information market is a market where prices are determined based on the predictions of participants rather than on supply and demand dynamics.

A Market in Which Transactions for the Asset or Liability