________ Assume Exchange Rate Risks by Acquiring Positions in a Currency

question 20

Multiple Choice

________ assume exchange rate risks by acquiring positions in a currency and hoping that they can correctly predict changes in the currency's market value.

• A) Commercial customers
• B) Speculators
• C) Arbitrageurs
• D) Individuals

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Definitions:

Accounts Payable

Liabilities owed by a company to creditors for goods and services received but not yet paid for.

Capital Stock

The total number of shares that a corporation is authorized to issue as stated in its corporate charter.

Assets

Economic resources controlled by a business from which future economic benefits are expected to flow to the business.

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.