Questions and Answers
What is the main role of brokers in the financial system?
Finding traders willing to take the other side of their clients' orders
Why are large orders hard to fill according to the text?
Because large orders generally trade at a premium to the current market price
In what way do exchanges act as brokers according to the text?
By arranging trades based on orders submitted by brokers and dealers
What is a primary function of investment banks' corporate finance divisions?
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What distinguishes block brokers from regular brokers?
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Why are financial intermediaries essential to well-functioning financial systems?
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What is the primary role of financial intermediaries?
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How do financial intermediaries connect buyers to sellers?
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What distinguishes financial intermediaries from traditional banks in terms of services provided?
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How do financial intermediaries benefit buyers and sellers in financial markets?
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