LOS d: Compare and contrast the roles of brokers and dealers.
Q1. Which of the following relationships is adversarial?
A) Broker and dealer.
B) Trader and dealer.
C) Trader and broker.
Q2. In which of the following is there a principal-agent relationship?
A) Broker and dealer.
B) Trader and dealer.
C) Trader and broker.
Q3. In which of the following relationships does the adverse selection risk problem pertain?
A) Trader and broker.
B) Trader and dealer.
C) Trader and investor.
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