Which One of the Following Statements Is Correct

question 46

Multiple Choice

Which one of the following statements is correct?

• A)Exchange rates are adjusted each morning and held constant until the next morning.
• B)The four most common currencies traded in the foreign exchange market are the U.S. dollar, franc, euro, and peso.
• C)All countries of South America uses the peso as their currency.
• D)New Zealand uses the same currency as Australia and that is the A$.
• E)The foreign exchange market is the largest financial market in the world.

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Definitions:

Capital Structure

Capital Structure is the mix of debt and equity financing a company uses to fund its operations and growth.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be repaid at a later date, usually with interest.

Equity

The owner's interest in an asset or business, representing the residual value after liabilities are deducted from assets.

Financial Manager

A professional responsible for the financial health of a corporation, overseeing investment activities, and planning strategies for long-term financial goals.