Foreign Exchange Activity Is Dominated by the Spot and Swaps

question 29

True/False

Foreign exchange activity is dominated by the spot and swaps markets.

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Definitions:

Availability Heuristic

A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid examples.

Satisficing

A decision-making strategy that entails selecting the first option that meets a minimum set of criteria, rather than optimizing.

Heuristic

Cognitive shortcuts or rules of thumb that simplify decision making, often at the expense of accuracy or completeness.

Mechanical Procedure

A process or operation that is carried out with machinery or equipment rather than by hand or through human effort.