Although Most Foreign-Exchange Activity Takes Place Through Big Money Center

question 50

True/False

Although most foreign-exchange activity takes place through big money center banks, the use of electronic trading has allowed even regional banks to deal directly in foreign-exchange markets.

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Definitions:

Preference

In finance, this term relates to shares or securities that have priority over common shares in the payment of dividends and upon liquidation.

Profitability Index

A calculation that determines the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.

Investment Projects

Initiatives undertaken by businesses or individuals that involve committing resources with the expectation of generating future financial returns.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.