Which One of the Following Statements Is Correct Concerning the Foreign

question 60

Multiple Choice

Which one of the following statements is correct concerning the foreign exchange market?

• A)The trading floor of the foreign exchange market is located in London, England.
• B)The foreign exchange market is the world's second largest financial market.
• C)The four primary currencies that are traded in the foreign exchange market are the U.S. dollar, the British pound, the French franc, and the euro.
• D)Importers, exporters, and speculators are key players in the foreign exchange market.
• E)The U.S. created a communications network called SWIFT to facilitate currency trading.

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Definitions:

Phillips, Hager & North

A Canadian investment management firm, known for its mutual funds and portfolio management services.

Canadian Equity Fund

An investment fund that concentrates on equities (stocks) based in Canada.

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) where the interest rate increases at set intervals over the term of the investment.

Compounded Annually

A method of calculating interest where the interest is added to the principal at the end of each year, leading to compound growth.