In the Context of Institutions That Make Foreign Exchange Happen

question 21

Multiple Choice

In the context of institutions that make foreign exchange happen, nonfinancial customers include:

• A) governments and businesses.
• B) large banks such as JP Morgan Chase.
• C) small commercial banks.
• D) hedge funds.

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Definitions:

Mortgage Loan

A loan used to purchase a real estate property, secured by the property itself.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada.

Compounded Monthly

Describes the process where interest is calculated and added to the principal amount of an investment or loan on a monthly basis.

Compounded Semi-annually

Refers to the process where interest is calculated and added to the principal sum of a deposit or loan twice a year.