What Is an Advantage That Banks Have When They Deal

question 67

Multiple Choice

What is an advantage that banks have when they deal with foreign currencies? 

• A) Interest payments to customers are low when dealing with foreign currencies.
• B) Accounts need not be maintained when dealing with foreign currencies.
• C) Risks that investors face are low when dealing with foreign currencies.
• D) Governments give banks more freedom when dealing with foreign currencies.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.

Price Elasticity Of Demand

A measure reflecting how price adjustments influence the demand quantity of a good.

Responsiveness

The quality of reacting quickly and positively, often used in contexts ranging from customer service to mobile or web design, indicating agility and attentiveness to needs or changes.

Midpoint Formula

A method used in economics to calculate the percentage change in a variable by dividing the change by the average of the initial and final values.