When the Numerator and Denominator in a Currency Pair Are

question 32

Multiple Choice

When the numerator and denominator in a currency pair are reversed, the exchange rate is expressed:

• A) in terms of currency risk.
• B) with the dollar first.
• C) at equilibrium.
• D) as its reciprocal.

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Definitions:

Expected Cash Flows

Projections of cash revenues and expenditures that a company anticipates receiving or paying out, crucial for budgeting and financial planning.

Secondary Market Transaction

A secondary market transaction occurs when financial assets, such as stocks or bonds, are bought and sold among investors after the original issuance.

Broker

An individual or entity that acts as an intermediary between buyers and sellers in financial transactions.

TSX

Toronto Stock Exchange, the largest stock exchange in Canada, where stocks, bonds, and other securities are bought and sold.