A dealer is called a primary dealer when:A. they act as a dealer and a broker.B. they stand ready to buy and sell a particular security.C. they trade with central banks when they conduct monetary policy.

The correct answer is Option C. Primary dealers are dealers with whom central banks trade when conducting monetary policy.Option A refers to broker-dealers and Option B refers to market-makers.

A CFA Level 1 Discussion About Question Of The Week: Level 1

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This topic has 1 reply, 1 voice, and was last updated Apr-208:33 pm by MarkMeldrum.

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- MarkMeldrum
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  17 Apr 2020 at 7:08 am
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  A dealer is called a primary dealer when:
  - A. they act as a dealer and a broker.
  - B. they stand ready to buy and sell a particular security.
  - C. they trade with central banks when they conduct monetary policy.
- MarkMeldrum
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  - Undecided
  20 Apr 2020 at 8:33 pm
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  The correct answer is Option C.
  
  Primary dealers are dealers with whom central banks trade when conducting monetary policy.
  
  Option A refers to broker-dealers and Option B refers to market-makers.
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