Speculators, Who Bet on the Direction in Which a Currency's

question 34

Multiple Choice

Speculators, who bet on the direction in which a currency's price will move, frequently employ:

• A)forward contracts.
• B)a bid.
• C)an ask.
• D)currency futures contracts.
• E)a cross rate.

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Definitions:

Operating Efficiency

A measure of how well a company uses its assets and liabilities internally to produce a profit.

Financial Efficiency

A measure of how well a company utilizes its assets and manages its liabilities to generate income, often assessed through ratios such as return on assets or equity.

EBIT

This metric, known as Earnings Before Interest and Taxes, calculates a business's profitability without taking into account expenses from interest and taxes.

ROE

Return On Equity represents a financial performance metric that is obtained by dividing a company's net income by its shareholders' equity, demonstrating the company's effectiveness in using investor funds to grow earnings.