Financial Flow Foreign Exchange Transactions Are More Responsive to News

question 6

True/False

Financial flow foreign exchange transactions are more responsive to news than trade-related transactions are.

---

Definitions:

IFRS

International Financial Reporting Standards are a set of accounting guidelines created by the International Accounting Standards Board that govern how transactions and other accounting events should be reported in financial statements.

Dividends Paid

Cash or stock distributed to shareholders out of a company's earnings.

Interest Received

The income earned from any form of investments like savings accounts, certificates of deposit, or bonds.

Cash Flows

The aggregate sum of cash entering and leaving a business, critically impacting its financial fluidity.