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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
What term describes the highest price a buyer is prepared to pay for a security?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
The bid price represents the maximum amount a buyer is willing to pay for a security. The asking price (offer price) is what the seller wants, while the quoted price can refer to either bid or ask. Market price is the prevailing price at which securities trade.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?