CFA CFA Level 1 Question of the Week: Level 1 – Equity Investments

Question of the Week: Level 1 – Equity Investments

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  • MarkMeldrum
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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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    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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