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In a ________ Market, intermediaries step in to both match willing buyer and wil

ID: 2613471 • Letter: I

Question

In a ________ Market, intermediaries step in to both match willing buyer and willing seller as well as to intermediate the trade by maintaining "inventory" of the asset. A ________ Market, in contrast, is like the last market but has intermediaries who do not take "inventory" of the asset. Finally, a ________ has no facilitating agents stepping in or matching buyers and sellers.

Brokered, Dealer, Direct Search

Brokered, Direct Search, Dealer

Dealer, Brokered, Direct Search

Direct Search, Dealer, Brokered

a.

Brokered, Dealer, Direct Search

b.

Brokered, Direct Search, Dealer

c.

Dealer, Brokered, Direct Search

d.

Direct Search, Dealer, Brokered

Explanation / Answer

In a Dealer market, intermediaries step in to both match willing buyer and willing seller as well as to intermediate the trade by maintaining "inventory" of the asset. A Brokered Market, in contrast, is like the last market but has intermediaries who do not take "inventory" of the asset. Finally, a Direct search has no facilitating agents stepping in or matching buyers and sellers.