Which of the Following Is NOT True Regarding the Market

question 60

Multiple Choice

Which of the following is NOT true regarding the market for foreign exchange?

• A) The market provides the physical and institutional structure through which the money of one country is exchanged for another.
• B) The rate of exchange is determined in the market.
• C) Foreign exchange transactions are physically completed in the foreign exchange market.
• D) All of the above are true.

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Definitions:

Consumer Goods

Products bought and used by consumers rather than by manufacturers for producing other goods.

Capital Goods

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are bought for consumption by the average consumer.

Capital Goods

Long-lasting goods acquired by businesses to create goods and services, as opposed to being directly consumed by consumers.