Which Is Not a Function of the Foreign Exchange Market

question 4

Multiple Choice

Which is not a function of the foreign exchange market?

• A)to transfer funds from one nation to another
• B)to finance trade
• C)to diversify risks
• D)to provide the facilities for hedging

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Definitions:

Lend-Lease Act

A program initiated by the United States during World War II that allowed the U.S. to supply Allied nations with vast amounts of military materiel while avoiding direct involvement in combat.

Military Supplies

Equipment, tools, vehicles, and logistical support materials utilized by armed forces for the purposes of national defense and warfare operations.

Impoverished England

Refers to periods in English history marked by widespread poverty and economic hardship.

Neutrality Acts

Legislation passed in the United States during the 1930s aimed at preventing the nation from being drawn into foreign conflicts by limiting American involvement with countries at war.