In a Quote-Driven Market model, true statements include that quotes can be entered on both sides of the book and can be used for ETFs.

In a Quote-Driven Market model, true statements include that quotes can be entered on both sides of the book and can be used for ETFs.

• A. True
• B. False
• C. Only for equities
• D. Not specified

Answer: (A)

In a quote-driven market, liquidity is supplied by dealers who publish two-sided quotes—one price they’re willing to pay (the bid) and one they’re willing to accept (the ask). That setup means quotes can be entered on both sides of the book to reflect the willingness to buy and the willingness to sell. ETFs are traded instruments just like equities, so market makers provide quotes for them as well within the same framework. Therefore, the statement is true: quotes can be entered on both sides and can be used for ETFs.

In a quote-driven market, liquidity is supplied by dealers who publish two-sided quotes—one price they’re willing to pay (the bid) and one they’re willing to accept (the ask). That setup means quotes can be entered on both sides of the book to reflect the willingness to buy and the willingness to sell. ETFs are traded instruments just like equities, so market makers provide quotes for them as well within the same framework. Therefore, the statement is true: quotes can be entered on both sides and can be used for ETFs.