1.) Consider the following statements:

• Statement A:A market maker earns the bid-ask spread on every pair of opposing trades.
• Statement B:A small bid-ask spread means that the market can trade more freely and liquidly.

Which of the statements given above is correct?

Select one:

a. Only statement A

b. Both statement A and B

c. Only statement B

d. Neither statement A nor B

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2.) Consider the following statements:

• Statement A:Fund managers rely on their reputation to secure funds to manage.
• Statement B:Retail investment is dominated by institutional investment.

Which of the statements given above is correct?

Select one:

a. Only statement A

b. Only statement B

c. Neither statement A nor B

d. Both statement A and B