Consider the following statements about exchanges:
(i) Over-the counter markets have no dealers.
(ii) Auction markets are purely electronic markets.
A)(i) is correct.
B)(ii) is correct.
C)(i) is correct and (ii) is incorrect.
D)(i) and (ii) are both correct
E)(i) and (ii) are both incorrect.

Question

Consider the following statements about exchanges: 
(i) Over-the counter markets have no dealers.
(ii) Auction markets are purely electronic markets.
A)(i) is correct.
B)(ii) is correct.
C)(i) is correct and (ii) is incorrect.
D)(i) and (ii) are both correct
E)(i) and (ii) are both incorrect.

Quizplus · Accepted Answer

(i) is incorrect because over-the-counter (OTC) markets do indeed have dealers who facilitate trades by matching buyers with sellers. (ii) is incorrect because auction markets can operate both electronically and through physical trading floors, not purely electronically.

Consider the Following Statements About Exchanges