Which of the following statements is FALSE?
A) A real market might also differ from the perfect market because of the possibly frequent event of a temporary imbalance in the number of buy and sell orders that investors may place for any security at any one time.
B) An unmatched or unbalanced flow of buy and sell orders causes a problem in that the security's price may change abruptly, even if there has been no shift in either supply or demand for the security.
C) The fact of imbalances in buy and sell orders cannot explain the need for the dealer or market maker, who stands ready and willing to buy a financial asset for its own account (to add to an inventory of the financial asset) or sell from its own account (to reduce the inventory of the financial asset) .
D) An unmatched or unbalanced flow of buy and sell orders causes a problem in that buyers may have to pay higher than market-clearing prices (or sellers accept lower ones) if they want to make their trade immediately.
Correct Answer:
Verified
Q8: _, orders are grouped together for simultaneous
Q9: In the absence of an effective short-selling
Q10: Without a secondary market, issuers would be
Q11: Which of the below statements is FALSE?
A)
Q12: Perfect market results when _.
A) the number
Q14: By taking the opposite side of a
Q15: In a continuous market, prices may vary
Q16: The _ can be viewed as the
Q17: Which of the below statements is TRUE?
A)
Q18: This practice of selling securities that are
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents