Bunuel wrote:
During turbulent times, stocks are seen as a riskier investment. This past year, the number of people involved in stock market trading declined compared to previous years, though the actual number of trades went up.
Which of the following, if true, could best explain the simultaneous increase in trades and decrease in number of people involved in trading?
A. Trading in bonds greatly increased in the past year
B. The increase in the number of professional traders was greater than the decrease in the number of private traders
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.
D. 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.
E. Most people sold their stocks for fear the stock market would crash.
Project CR Butler: Critical Reasoning
For all CR butler Questions Click HereWe need to pick an answer that explains both 1. the number of people involved in stock market trading declined compared to previous years and 2. number of trades went up
A. Trading in bonds greatly increased in the past year.
Talks about trading in bonds, we are not concerned with bonds. it doesn't even provide any info about the 2 factors mentioned above
B. The increase in the number of professional traders was greater than the decrease in the number of private traders
comparison of no of professional traders to decrease of private traders doesn't explain the number of trades going 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 was tricky and i almost picked it. but being more active does not mean trading more nesseciarily
D. 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 explains both the factors that we are looking to justify.E. Most people sold their stocks for fear the stock market would crash.
not really useful for us
D is the correct answer IMO.