Which of the Following Is Not True Regarding Currency Correlations

question 36

Multiple Choice

Which of the following is not true regarding currency correlations?

• A) Two highly positively correlated currencies act almost as if they are the same currency.
• B) If two inflow currencies are highly positively correlated, transaction exposure is somewhat offset.
• C) If two inflow currencies are negatively correlated, transaction exposure is somewhat offset.
• D) If two currencies, one an inflow currency and the other an outflow currency, are highly positively correlated, transaction exposure is somewhat offset.

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Definitions:

Detached

Being emotionally disinterested or indifferent; uninvolved or unconnected.

Communication Behavior

The ways in which individuals convey and interpret messages through verbal and non-verbal means.

Assertive

Behaving confidently and forcefully to express one’s opinions and needs without infringing on the rights of others.

Aggressive

Behaving or acting in a forceful, hostile, or determined way, often to dominate or control others.