Which is not a correct statement regarding market making?

The statement that firm quotes are unnecessary if conditions are favorable is not accurate in the context of market making. Market makers have a fundamental responsibility to provide liquidity to the markets, which includes consistently offering firm quotes regardless of market conditions. Even in favorable conditions, the expectation is that market makers maintain their obligations to ensure that there is always a two-sided market available for traders. This is pivotal in sustaining market efficiency and facilitating trading activity, as firm quotes play a critical role in allowing market participants to buy and sell with confidence.

While there may be situations where the spread between bid and offer prices can be adjusted based on market conditions, the essence of being a market maker lies in the continuous availability of quotes. Thus, the importance of firm quotes remains constant, and any statement suggesting that they can be disregarded during favorable conditions does not align with the core principles of market making.