A liquidity provider is someone who:
A) is always ready to buy or sell an asset.
B) works at a bank and specializes in loans.
C) works in the financial system.
D) invests in the economy.

Question

Quizplus · Accepted Answer

A liquidity provider is someone who is always ready to buy or sell an asset, providing liquidity to the market. They do not necessarily work at a bank or specialize in loans, and while they may invest in the economy, this is not the defining characteristic of a liquidity provider.

A Liquidity Provider Is Someone Who