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International Financial Markets in the Digital Era
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International Financial Markets in the Digital Era

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Questions and Answers

What was the dominant trading method for equity and bonds before the use of computers?

  • Virtual reality trading
  • Electronic trading via NASDAQ
  • Barter system
  • Open outcry trading (correct)
  • In which year did the NASDAQ introduce electronic trading, marking the shift from physical trading to electronic trading?

  • 1971 (correct)
  • 2009
  • 1960
  • 1984
  • What system was introduced by the New York Stock Exchange in 1976 to enable customers and brokers to directly send their orders to a designated market maker?

  • Electronic Communication Networks (ECN)
  • SuperDO system
  • Designated order turnaround (DOT) system (correct)
  • Unified Trading Platform
  • Which computer program, introduced in 2009, facilitates the transmission of both market and limit orders directly to the trading post and designated market makers?

    <p>Super Display Book (SDBK)</p> Signup and view all the answers

    What significant development marked the emergence of Electronic Communication Networks (ECN) in the 1990s?

    <p>Decrease in execution time and costs</p> Signup and view all the answers

    Where did traders meet in New York in 1792 to carry out their trades?

    <p>In a coffeehouse in Manhatten</p> Signup and view all the answers

    What was the main advantage of the designated order turnaround (DOT) system introduced by the New York Stock Exchange in 1976?

    <p>Increased speed</p> Signup and view all the answers

    What type of trading became a reality with the introduction of over the counter (OTC) trading during the shift to electronic trading?

    <p>Direct trade between brokers and customers</p> Signup and view all the answers

    Which city hosted fairs every 3 months between 1532 and 1763 for traders concerned with real goods, currencies, and money?

    <p>'Genoa'</p> Signup and view all the answers

    What were the functions of money changers and brokers at the fairs?

    <p>Weighing gold, silver, and examining coins</p> Signup and view all the answers

    Which city hosted fairs every 3 months between 1532 and 1763 for traders concerned with real goods, currencies, and money?

    <p>Genoa</p> Signup and view all the answers

    What was the dominant trading method for equity and bonds before the use of computers?

    <p>Floor trading via open outcry</p> Signup and view all the answers

    When did traders meet in New York to carry out their trades in a coffeehouse in Manhattan?

    <p>1792</p> Signup and view all the answers

    Which of the following was the first bank established in England?

    <p>Bank of England (1609)</p> Signup and view all the answers

    What was the reaction of the New York Stock Exchange to over the counter (OTC) trading becoming a reality?

    <p>Introduced the designated order turnaround (DOT) system in 1976</p> Signup and view all the answers

    What marked the emergence of Electronic Communication Networks (ECN) in the 1990s?

    <p>Shift from physical trading to electronic trading</p> Signup and view all the answers

    In which year did the NASDAQ introduce electronic trading, marking the shift from physical trading to electronic trading?

    <p>1971</p> Signup and view all the answers

    What did the Super Display Book (SDBK) introduced in 2009 facilitate?

    <p>Transmission of market and limit orders directly to the trading post and designated market makers</p> Signup and view all the answers

    What system introduced by the New York Stock Exchange allowed customers and brokers to directly send their orders to a designated market maker instead of employing a broker?

    <p>Designated Order Turnaround (DOT) system</p> Signup and view all the answers

    What was the purpose of the fairs held between 1532 and 1763 in cities like Genoa, Piacenza, Verona, and Bolzano/Bozen?

    <p>To examine coins, weight gold and silver, make loans, and collect debts</p> Signup and view all the answers

    What was the reaction of the New York Stock Exchange to over the counter (OTC) trading becoming a reality?

    <p>Designated order turnaround (DOT) system</p> Signup and view all the answers

    Which marked the emergence of Electronic Communication Networks (ECN) in the 1990s?

    <p>The introduction of electronic order routing and automated trading for institutional investors</p> Signup and view all the answers

    What was the main advantage of the designated order turnaround (DOT) system introduced by the New York Stock Exchange in 1976?

    <p>Increase in speed</p> Signup and view all the answers

    What type of trading became a reality with the introduction of over the counter (OTC) trading during the shift to electronic trading?

    <p>Electronic order routing</p> Signup and view all the answers

    What system was introduced by the New York Stock Exchange in 1976 to enable customers and brokers to directly send their orders to a designated market maker?

    <p>Designated order turnaround (DOT) system</p> Signup and view all the answers

    In which year did NASDAQ introduce electronic trading, marking the shift from physical trading to electronic trading?

    <p>1971</p> Signup and view all the answers

    Where did traders meet in New York in 1792 to carry out their trades?

    <p>Coffeehouse in Manhattan</p> Signup and view all the answers

    Which city hosted fairs every 3 months between 1532 and 1763 for traders concerned with real goods, currencies, and money?

    <p>Genoa</p> Signup and view all the answers

    What significant development marked the emergence of Electronic Communication Networks (ECN) in the 1990s?

    <p>The introduction of electronic order routing and automated trading for institutional investors</p> Signup and view all the answers

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