The Bond World's Most Elite Club Isn't What It Used to Be

The Bond World's Most Elite Club Isn't What It Used to Be

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the challenges faced by primary dealers due to increased regulations, competition from high-frequency trading, and changes in the Treasury market. It explores the debate on whether these market evolutions benefit consumers and highlights Wells Fargo's strategy in becoming a primary dealer. The video also examines trends in primary dealership and the potential decline in its advantages.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are some of the challenges faced by primary dealers in the current market?

Decreased demand for corporate bonds

Lack of access to electronic trading platforms

Higher costs due to regulations and fewer buyers at auctions

Increased competition from traditional banks

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has the evolution of the market been perceived in terms of consumer benefits?

It has had no impact on consumer costs

It is debated, with some seeing benefits from alternative liquidity providers

It has led to increased costs for consumers

It has universally been seen as negative for consumers

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did Wells Fargo decide to become a primary dealer?

To diversify into high-frequency trading

To reduce its operational costs

To participate in mortgage-backed securities trading

To increase its market share in corporate bonds

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What historical trend is noted about the number of primary dealers?

The number has decreased steadily since the 80s

The number was higher in the 80s and has fluctuated since

The number has consistently increased over the years

The number has remained stable since the 80s

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current perception of the advantages of being a primary dealer?

It is seen as an indisputable advantage

It is increasingly seen as less advantageous

It is considered a disadvantage

It is viewed as a neutral position