Which of the Below Statements Is FALSE

question 3

Multiple Choice

Which of the below statements is FALSE?

• A) The Eurocurrency market is the name of the unregulated and informal market for bank deposits and bank loans denominated in a currency other than that of the country where the bank initiating the transaction is located.
• B) Just like a forward or futures contract, an option gives the option buyer the opportunity to benefit from favorable exchange rate movements but establishes a maximum loss.
• C) Foreign-exchange futures contracts for the major currencies are traded on the International Monetary Market (IMM), a division of the Chicago Mercantile Exchange.
• D) The two types of foreign currency options are options on the foreign currency and futures options.

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Definitions:

Circuit

A closed path through which electric current flows, typically involving power sources, loads, and conductive materials.

DMM

Stands for Digital Multimeter, an instrument that measures electrical values such as voltage, current, and resistance.

Current Flow

The movement of electric charge carriers, like electrons, through a conductor or circuit, creating electric current.

Inductive Measurement

A technique for measuring a property or component by utilizing the principle of inductance or the change in inductance in a system.