What is the point at issue between Larisa and Karola? A) Does the Int

QUESTION

What is the point at issue between Larisa and Karola?

A) Does the Internet provide accurate and reliable information on investments?
B) Should they pay a broker extra to recommend an investment for them?
C) Should they invest their money in stocks or bonds?
D) Is Merrill Lynch a reliable source of investment advice?
E) Will the stock market rise or fall in the next decade?

ANSWER

Answer: B
Explanation: B) Both kinds of brokers carry out investment trades, but a full-service broker provides extra customer services, such as research and advice, in return for a higher commission per trade. So Choice B is correct: Larisa and Karola are at odds over whether this advice is worth the extra expense. None of the other choices present issues about which the two disagree: Karola might concede that Merrill Lynch is a reliable broker (Choice D), and Larisa might agree that the Internet is a reliable source of financial information (Choice A), but the issue is whether they should do their own research or pay an expert for it. Neither Choice C nor E is part of the discussion.