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Which one of the followings is not a characteristic of the OTC market?

A. Centralized exchange.
B. Informal trading.
C. Customizable contracts.
D. Standardized products.

1 Answer

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Final answer:

The OTC market is characterized by decentralized trading, informality, and customizable contracts. Standardized products are not a characteristic of the OTC market.

Step-by-step explanation:

The correct answer is A. Centralized exchange. The OTC (Over-The-Counter) market is a decentralized marketplace where trading is done directly between buyers and sellers, without the presence of a centralized exchange. In the OTC market, trading is conducted informally, outside of formal exchanges. Customizable contracts are a characteristic of the OTC market, as they allow parties to negotiate specific terms and conditions. However, standardized products are not a characteristic of the OTC market, as the trading of OTC products can involve a wide range of individual contracts tailored to the needs of the parties involved.

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