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13 Dec 2021, 02:30
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
70% (01:23) correct
30%
(01:38)
wrong
based on 408
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Not Attempted Yet
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.
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.
13 Dec 2021, 03:24
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Bunuel
So, the number of people involved in trading went down but the number of trades went up, it won't take a genius to figure out how's that possible:
People left are trading more volumes simple.! (b/w do you have any inside source
) [Strict hush hush haan.!] 
A. Trading in bonds greatly increased in the past year
Not in line with our pre-thinking approach.
B. The increase in the number of professional traders was greater than the decrease in the number of private traders
Are professional and private traders the only people who do trading.? I hope you understand what I am trying to imply. (work that grey cells of yours)
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.
Becoming more active is not proportional to trading more stocks.
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.
Ohkay. So you want to be a stockbroker. In line with our pre-thinking.
E. Most people sold their stocks for fear the stock market would crash.
Do selling of stocks make the number of stocks go up.? I don't know. I am not an Expert. So why it is expecting me to be one.?
13 Dec 2021, 04:30
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Bunuel
We 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.
