Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A)The Board of Governors of the Federal Reserve System authorizes member banks to accept drafts that arise in the course of certain types of international transactions.
• B)Multinational corporations may engage in foreign exchange management for speculative purposes,as well as for defensive purposes.
• C)Arbitrage in the foreign exchange market is the simultaneous purchasing of commodities or securities in one market and selling them in another where the price is higher.
• D)All the above statements are correct.

---

Definitions:

Void

Refers to a contract or legal agreement that is deemed unenforceable and having no legal effect.

Actual Authority

The express and implied powers that an agent has been legitimately granted by a principal in an agency relationship.

Exceed

To go beyond the limits or expectations of something.

Unforeseen Emergency

involves situations or events that could not have been reasonably anticipated and require immediate action to prevent or mitigate harm.