_____ act as mediators between investors and dealersa.Central Bankb.Commercial Bankc.Retail traderd.Broker
Question
_____ act as mediators between investors and dealers
a. Central Bank
b. Commercial Bank
c. Retail trader
d. Broker
Solution
To answer the question, we need to understand the roles of each option provided and determine which one acts as mediators between investors and dealers.
a. Central Bank: The central bank is responsible for regulating the country's monetary policy and maintaining financial stability. While it plays a crucial role in the overall economy, it does not directly act as a mediator between investors and dealers.
b. Commercial Bank: Commercial banks provide various financial services to individuals, businesses, and governments. They facilitate transactions, offer loans, and manage deposits. While they may interact with investors and dealers, their primary role is not that of a mediator.
c. Retail trader: Retail traders are individuals or small firms that engage in buying and selling financial instruments for their own accounts. They typically do not act as mediators between investors and dealers.
d. Broker: A broker is a financial intermediary who facilitates transactions between buyers and sellers. They act as intermediaries in various markets, including the stock market, foreign exchange market, and commodity market. Brokers often provide services such as executing trades, providing market information, and offering advice. Therefore, brokers are the option that acts as mediators between investors and dealers.
In conclusion, the correct answer is d. Broker.
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