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2. Which of the following BEST characterizes the economics of a security dealer who funds his long and short security positions in the repo and

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2. Which of the following BEST characterizes the economics of a security dealer who funds his long and short security positions in the repo and reverse money markets? O The dealer changes price quotes to control exposure to price risk O The dealer uses both price and yield quotes in order to control exposure to both price and liquidity risk O The dealer changes yield quotes to control exposure to liquidity risk O The dealer is price taking in competitive markets O The dealer increases and decreases exposure to price risk in proportion to liquidity risk

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