The __________ market liquidity is, the __________ the bid-asked spread will be.
A) higher; wider
B) lower; narrower
C) higher; narrower
D) None of the above.

Name: The __________ market liquidity is, the __________ the bid-asked spread will be. A) higher; wider B) lower; narrower C) higher; narrower D) None of the above.
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Question

Quizplus · Accepted Answer

Higher market liquidity means there are more buyers and sellers, which typically results in a narrower bid-ask spread because it's easier to execute trades near the market price.

The __________ Market Liquidity Is, the __________ the Bid-Asked Spread

The Market Liquidity Is, the the Bid-Asked Spread