It Is Characteristic of Foreign Exchange Dealers To

question 15

Multiple Choice

It is characteristic of foreign exchange dealers to:

• A) bring buyers and sellers of currencies together but never to buy and hold an inventory of currency for resale.
• B) act as market makers, willing to buy and sell the currencies in which they specialize.
• C) trade only with clients in the retail market and never operate in the wholesale market for foreign exchange.
• D) All of the above are characteristics of foreign exchange dealers.

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Definitions:

Administrative Expenses

Administrative Expenses are overhead costs not directly tied to a specific function such as manufacturing, production, or sales, and can include salaries, rent, and office supplies.

Budgeting

A financial planning process whereby individuals or entities estimate their expected incomes and expenditures over a defined period.

Activity Variance

Activity variance calculates the difference between the planned quantity of activity and the actual quantity, analyzing the impact on costs and operational efficiency.

Direct Labor

The wages and benefits paid for the labor directly involved in the production of goods or services.