We need to explain two seemingly contradictory trends:
- A decrease in the number of people involved in stock market trading
- An increase in the
actual number of trades
A. Trading in bonds greatly increased in the past year
This doesn't explain the increase in stock trades or the decrease in stock traders.
B. The increase in the number of professional traders was greater than the decrease in the number of private traders
This only tells us the proportion of the number of professional vs private traders amongst the decreased count of total traders. No matter what the proportion is, the overall number of traders still decreased so it doesn't matter if a certain type of traders actually increased. It also does nothing to explain wny the number of trades actually went up.
C. Although an economy in crisis keeps most people away from the stock market, it provides an excellent opportunity for professional traders willing to take risks by becoming even more active in the markets than usual. This explains both trends: fewer people overall (as most stay away), but more trades (as professionals become more active). =>
Keep this for nowD. A new, advanced online interface for purchasing and selling stocks came into use this past year, allowing subscribers to trade in greater volumes than ever before.
This could explain the increase in trades, but
doesn't explain why fewer people are involved.
E. Most people sold their stocks for fear the stock market would crash.
This might explain a temporary increase in trades, but doesn't explain the continued high trading volume or why fewer people are involved overall.
Option C provides the best explanation for both observed trends. It explains why the number of people involved decreased (most people staying away due to the crisis) and why the number of trades increased (professional traders becoming more active).
Therefore, the best answer is C.