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) (D)</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 (A)</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 (B)</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 (B)</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 (B)</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' (C)</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 (D)</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 (B)</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 (C)</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 (C)</p> Signup and view all the answers

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

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

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