Trading Pairs and Liquidity MCQs

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1. : In cryptocurrency trading, a trading pair usually represents?





2. : What does BTC/USDT trading pair mean?





3. : Which factor defines liquidity in a trading market?





4. : High liquidity in an exchange means?





5. : Which of the following is considered a major trading pair?





6. : Low liquidity markets are often associated with?





7. : Which term describes the difference between the buy and sell price in a trading pair?





8. : A narrow bid-ask spread usually indicates?





9. : In a trading pair ETH/BTC, ETH is considered?





10. : In a trading pair ETH/BTC, BTC is considered?





11. : What role do liquidity providers play in exchanges?





12. : Which type of exchange usually has higher liquidity?





13. : Liquidity pools are primarily associated with?





14. : What happens to slippage in low liquidity markets?





15. : Which factor increases trading pair liquidity?





16. : BTC/ETH is an example of what type of trading pair?





17. : USDT/INR is an example of which type of pair?





18. : Which factor most affects liquidity in crypto markets?





19. : Stablecoin trading pairs are important because?





20. : What is the main advantage of high liquidity for traders?





21. : Which stablecoin is most commonly paired with crypto assets?





22. : In trading pairs, the first currency listed is known as?





23. : Which order book feature shows available buy and sell orders?





24. : Why do traders prefer high liquidity pairs?





25. : Which of the following is considered an illiquid asset?





26. : Which type of trading pair often suffers from low liquidity?





27. : What is the purpose of Automated Market Makers (AMMs)?





28. : Which metric is a strong indicator of market liquidity?





29. : What is slippage?





30. : If BTC/USDT pair has high liquidity, traders can expect?





31. : Why do most traders use stablecoin pairs?





32. : Which of these pairs is least likely to be liquid?





33. : Depth charts visually represent?





34. : The ability to trade assets quickly without affecting price is?





35. : Which exchange type relies heavily on liquidity pools?





36. : Large spreads between bid and ask prices usually indicate?





37. : Which is the most liquid cryptocurrency in global trading?





38. : Trading pairs with fiat currencies are important because?





39. : What does higher market depth indicate?





40. : Liquidity mining rewards users for?





41. : The opposite of liquidity in financial markets is?





42. : Which of the following pairs has the highest global liquidity?





43. : Which is an advantage of liquidity pools on DEXs?





44. : What is the impact of high liquidity on spreads?





45. : Why do low-cap tokens face liquidity issues?





46. : What is the main disadvantage of low liquidity markets?





47. : Which is considered a highly liquid trading environment?





48. : In crypto, liquidity risk refers to?





49. : Which market feature helps stabilize liquidity?





50. : When a token pair has no liquidity providers, the market becomes?





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