A market has ________ if it can absorb large orders without disrupting prices; it has ___________ if it has many trades.
A) depth, breadth
B) breadth, depth
C) liquidity, quick execution
D) quick execution, liquidity

Question

Quizplus · Accepted Answer

Depth refers to the ability of a market to absorb large orders without disrupting prices, while breadth refers to the number of trades in a market. Liquidity and quick execution may contribute to depth and breadth, respectively, but they are not the same as those concepts. Therefore, option A is the best choice.

A Market Has ________ If It Can Absorb Large Orders