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The Market-Making Function of Investment Banking Can Be Described as

Question 42

Multiple Choice

The market-making function of investment banking can be described as


A) agency transactions are two-way transactions on behalf of customers, such as a dealer working for a fee or commission.
B) agency transactions are when market makers take long or short positions and seek profits on price movements.
C) market makers take inventory positions to stabilize the market in the securities.
D) Answers A and C only.
E) Answers B and C only.

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