Under What Conditions Can an FX Broker Act as a Position

question 227

Multiple Choice

Under what conditions can an FX broker act as a position taker?

• A) if a principal refuses to honour the deal
• B) no conditions are required; the broker is entitled to take positions
• C) only if he can not find another counterparty for a name switching
• D) brokers act only as intermediaries or arrangers of deals

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Definitions:

MR = MC

A principle in economics stating that profit maximization occurs when a firm's marginal revenue (MR) equals its marginal cost (MC) of production.

Profits Maximization

The process or strategy aimed at achieving the highest possible profit by a firm within a given period.

Imperfect Competition

All market structures except pure competition; includes monopoly, monopolistic competition, and oligopoly.

Labor Demand Elasticity

The sensitivity of employers' demand for labor to changes in the price or cost of labor, reflecting how much the quantity of labor demanded responds to changes in wages.