Final answer:
The ask in exchange markets is the lowest price at which a broker is willing to sell a security. It is determined by market conditions and reflects the dynamics of supply and demand without direct government oversight. Hence, option (b) is correct.
Step-by-step explanation:
In the exchange markets, the ask represents the b. Lowest price at which broker is willing to sell at a given moment in time. The ask price is part of a quote that is also comprised of the bid price; together these reflect the supply and demand models.
When an investor is looking to buy a security, the ask price is the lowest price that they will encounter for that transaction, reflecting the seller's lowest price point at which they are willing to part with their security.
Conversely, the bid price is the highest price that a buyer is ready to pay for a security. Prices in these markets are influenced by consumer preferences, budget sets, and profit-seeking producer reactions, without direct government oversight, making the ask price a dynamically changing value as market conditions fluctuate.