Mastering Low Liquidity Markets

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

What is the impact of low liquidity on prices in a market?

  • Prices decrease steadily
  • Prices fluctuate greatly (correct)
  • Prices remain stable
  • Prices increase steadily

Why are prices in a market with low liquidity more volatile?

  • Due to high transaction volume
  • Due to a large number of bids and offers
  • Due to stable prices
  • Due to low transaction volume (correct)

Which of the following best describes a market with low liquidity?

  • A market with a low number of bids and offers (correct)
  • A market with a high number of bids and offers
  • A market with stable prices
  • A market with high transaction volume

Which of the following best describes a thin market?

<p>A market with a low number of bids and offers (C)</p> Signup and view all the answers

What is the impact of low liquidity on prices in a thin market?

<p>Prices are volatile (C)</p> Signup and view all the answers

Why are prices in a thin market more volatile?

<p>Due to low transaction volume (C)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser