There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
Correct answer: B. Over-the counter (OTC)
- A. Grey market
- B. Over-the counter (OTC)
- C. Open market
- D. Back market
Explanation
An over-the-counter market has no centralized exchange; geographically dispersed dealers trade securities through communication networks such as telephones and computer systems. It commonly handles securities not listed on formal stock or bond exchanges.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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