SIE Exam Question 838: Answer and Explanation

Question: 838

Which of the following is a broker that offers clearing, settlement, and custodial services to other brokers, and enables them to provide full service to their clients without incurring the sizable costs of running a back office?

• A. Carrying broker
• B. Clearing broker
• C. Executing broker
• D. Introducing broker

Correct Answer: A

Explanation:

A carrying broker offers clearing, settlement, and custodial services to other brokers, and enables them to provide full service to their clients without incurring the sizable costs of running a back office.