In Which of the Following FX Trading Activities Does the FI

question 73

Multiple Choice

In which of the following FX trading activities does the FI not assume FX risk?

• A)The purchase and sale of foreign currencies for the purpose of profiting from forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers to partake in and complete international commercial trade transactions.
• C)The purchase and sale of foreign currencies for the purpose of offsetting customer exposure in any given currency.
• D)The purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.
• E)The purchase and sale of foreign currencies to allow customers to partake in and complete international commercial trade transactions and to take positions in foreign real and financial investments.

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Definitions:

45-degree Line

A line in economic graphs illustrating points where two variables measured on the axes are equal.

Indeterminate

Lacking clear or definite limits or form; unable to be precisely measured or decided.

Graphed

Represented data or quantities visually using a graph, such as a pie chart, line graph, or bar chart.

Slope

In mathematics, the slope is the measure of the steepness, incline, or grade of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.