Suppose You Can Make Profits in the Foreign Exchange Market

question 159

Multiple Choice

Suppose you can make profits in the foreign exchange market by buying a foreign currency at a low price, then selling it at a higher price later on.What you are engaging in is a

• A) discount position.
• B) premium position.
• C) short position.
• D) long position.

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Definitions:

Market Size

The total number of potential buyers and sellers of a particular product or service within a given market.

Market Participants

Individuals and entities that engage in the buying, selling, and exchange of goods, services, and securities within an economic system.

Price Received

The actual amount of money that a seller gets from a buyer for a good or service, after discounts or adjustments.

Market Participants

Individuals or institutions that are involved in buying, selling, and trading in financial markets, including buyers, sellers, investors, speculators, and market makers.