Question

Q. The key difference between a broker and a dealer is that:

1. dealers act as principals.

2. brokers act as market makers.

3. brokers trade directly with other market participants.

Q. Documentation that conveys ideas, concepts, or information is meeting which of the following objectives?

1. Measuring

2. Authorising

3. Communicating

Q. Investment industry participants have been able to reduce operating costs over the years because of:

1. regulation.

2. globalisation.

3. computerisation.

Answer 1

1. The correct option is brokers act as market maker

The Brokers are the one who do not hold inventory but the dealer does and the broker act as the Intermediary between the buyer and the seller thus ending up making the market.

2. The correct option is Communicating

The Communication document is the one that tells the objectives of the meetings.

3. The correct answer is Computerisation

The Computerisation helps the company to apply the automation of various tasks and reduce the maunal work thus reducing the cost.