A Broker

question 41

Multiple Choice

A broker

• A) is an independent business concern that operates as a link between producers and ultimate consumers or organizational buyers.
• B) is a merchant middleman who is engaged primarily in selling to ultimate consumers.
• C) assists in the performance of distribution tasks other than buying, selling, and transferring title.
• D) does not usually have physical custody of products, and is not looked upon as a permanent representative of either the buyer or the seller.

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Definitions:

Market for Euros

A foreign exchange market where Euros are traded against other currencies.

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international trade and considered a key global reserve currency.

Flexible Exchange-Rate System

A currency valuation system where the value of a currency is allowed to fluctuate in response to foreign exchange market mechanisms.

Foreign-Exchange Reserves

Stockpiles of foreign currencies maintained by a nation’s central bank. Obtained when the central bank sells local currency in exchange for foreign currency in the foreign exchange market.