Which of the Following Is a Difference Between an Exchange

question 7

Multiple Choice

Which of the following is a difference between an exchange market and an over-the-counter (OTC) market?

• A) An exchange market is a securities market, whereas an OTC market is a goods market.
• B) An exchange market has no membership qualifications, whereas an OTC has membership qualifications.
• C) An exchange market provides a physical facility for the buying and selling of securities, whereas an OTC market has no physical facility.
• D) An exchange market involves brokers buying directly from the public, whereas an OTC market involves brokers buying and selling stocks through registered specialists.

---

Definitions:

Inputs

Resources such as labor, raw materials, and capital that are used in the production process to create goods or services.

Gain From Trade

The benefit obtained by countries, organizations, or individuals from engaging in exchange or trade.

Absolute Advantage

The ability of an entity to produce a good or offer a service more efficiently than its competitors when using the same amount of resources.

Absolute Advantage

The capability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors.