Currency Trading Increased Tremendously Between 2004 and 2007 with Daily

question 55

Multiple Choice

Currency trading increased tremendously between 2004 and 2007 with daily trading volume jumping from $1.9 trillion to $3.2 trillion. Which of the following do experts think was a major driving force behind the increased daily volume?

• A) increased activity by specialized investment groups such as hedge funds
• B) institutional investors holding more internationally diversified portfolios thus requiring more currency transactions
• C) increased use of technical computer-based trading
• D) all of the above

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