Explain the purpose of a brokerage account and the 3 types of brokers
What will be an ideal response?
Answer: A brokerage account represents the money (cash) or investments (securities) you have at a brokerage firm. This is an account to use in the buying and selling of securities on a regular or semi-regular basis.
A full-service broker gives advice and direction to the client. This broker is paid a commission based upon the sales volume generated. Discount brokers execute trades without giving advice and charge 50% to 70% less than a full-service broker. A deep-discount broker undercuts the dominant discount brokers and will execute some trades for up to 90% off the price of a full-service broker.
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Finalized budget figures are sent to the GL/BR process by:
a. the financial reporting officer b. the budgeting department c. the treasurer d. the managerial reporting officer
Dividing the revenue of each competitor by the total market size will calculate the ________
A) market risk B) market share C) market mix D) market cap
The number of periods in a future value calculation may only be expressed in years.
Answer the following statement true (T) or false (F)
What is the name of the rate currency traders quote in the interbank market to sell foreign currencies?
A) bid-ask spread B) bid rate C) cross rate D) ask rate