Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as an agent of its customers for a fee and does assume part of the FX risk.
• B)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as an agent of its customers for a fee but does not assume any of the FX risk.
• C)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as a hedger to reduce the FX exposure.
• D)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as an agent of its customers for a fee and as a hedger to reduce the FX exposures.

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Definitions:

Gestalt Psychology

A theory of mind and brain, proposing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies.

Gestalt Principles

Psychological theories proposing that humans naturally perceive objects as organized patterns and wholes, rather than as separate components.

(a) Proximity

The physical closeness or distance between objects or individuals, impacting interactions and perceptions.

False Alarms

In signal detection theory, instances when a non-present signal is mistakenly detected or reported as present.