Which of the following statements is true of an electronic exchange?
A) It supports competitive bidding.
B) Amazon.com is an example of an exchange used by consumers.
C) It generates revenue only through advertising.
D) It matches buyers and sellers.

Question

Quizplus · Accepted Answer

An electronic exchange matches buyers and sellers, allowing them to trade goods and services electronically. This is the primary function of an electronic exchange, and they can generate revenue through transaction fees or commissions. Examples of electronic exchanges include Nasdaq, NYSE, and eBay. Option A is partially correct, as some electronic exchanges support competitive bidding, but it's not the defining feature of an electronic exchange. Option B is incorrect because Amazon.com is not an electronic exchange; it's an online retailer. Option C is incorrect because electronic exchanges can generate revenue through transaction fees, not just advertising.

Which of the Following Statements Is True of an Electronic