Decisions Related to the Handling of a Trade
Identify one market characteristic that indicates a high degree of transparency in a given marketplace, and one market characteristic that indicates a high degree of assurance of completion in a given marketplace.
You have run over the allotted time to provide your answer.
Which of the following characteristics did you say indicates a high degree of transparency in a given marketplace?
Right!
That's a characteristic of transparent markets.
Sorry, incorrect.
If anything, transparent markets should have _higher_ volume, all else equal. But it's difficult to say that with certainty, so it's best to avoid making statements linking volume to transparency.
Correct!
That would be an appropriate answer.
Sorry, that's too bad.
Which of the following characteristics did you say indicates a high degree of assurance of completion in a given marketplace?
Incorrect.
Assurance of completion isn't linked to the profitability of trading.
That's a shame.
Yes!
That's an appropriate response.
Correct!
Markets with a high assurance of completion require brokers or clearing entities to guarantee the trade to both the buyer and the seller. In addition, brokers or clearing entities may be subject to standards of financial strength to ensure the guarantee has strong backing.
Markets with a high degree of transparency allow individuals to quickly and inexpensively obtain accurate information about quotes and trades. Also, details about completed trades are quickly and accurately reported to the public.
Transparent markets allow individuals to quickly and inexpensively obtain accurate information about quotes and trades
Transparent markets exhibit lower volume
Transparent markets quickly provide accurate details about completed trades to the public
None of these were included in my response
Markets with a high assurance of completion require brokers or clearing entities to guarantee the trade to both the buyer and the seller
In markets with a high assurance of completion, brokers or clearing entities may be subject to standards of financial strength to ensure the guarantee has strong backing
In markets with high assurance of completion, trades executed with dealers are more profitable on average
None of these match my answer
Out of time step
Other responses
