Which of the following markets are characterized by the presence of a market maker always making two-way prices?

Which of the following markets are characterized by the presence of a market maker always making two-way prices?
A . Exchanges
B . OTC markets
C . ECNs
D . Dark pools

Answer: A

Explanation:

Over the counter and electronic communication networks match buyers and sellers. However, there is no market making function, ie, in periods of stress liquidity may completely disappear from these markets. Exchanges normally have market makers that are required to present two way quotes on the securities they are making the market for. Therefore Choice ‘a’ is the correct answer.