The Greatest Volume of Daily Foreign Exchange Transactions Are

question 47

Multiple Choice

The greatest volume of daily foreign exchange transactions are:

• A) spot transactions.
• B) forward transactions.
• C) swap transactions.
• D) This question is inappropriate because the volume of transactions are approximately equal across the three categories above.

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Definitions:

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.

Utilization

The extent to which a resource, such as equipment or labor, is being used effectively to produce goods or services.

Efficiency

The ratio of the output gained from a system to the input used, typically expressed as a percentage indicating performance or productivity.

Expected Monetary Value

A statistical measure used in decision-making under uncertainty, calculating the average outcome when future events have varying monetary values.