A Foreign Currency Trader Who Works for a Bank Is

question 84

True/False

A foreign currency trader who works for a bank is assigned a position limit that stipulates the amount of buying and selling that can be conducted in a given currency.

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Definitions:

Payback Period

The length of time required to recover the cost of an investment.

Direct Materials

Materials that can be directly linked to the production of a product and represent a substantial portion of the cost.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Annual Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues over a year.