The Movement of Foreign Exchange Rates

question 137

Multiple Choice

The movement of foreign exchange rates

• A) provide some insurance against foreign exchange risk.
• B) has significantly deteriorated the overall volume of foreign trade.
• C) sets interest rates charged to foreign investors.
• D) introduces many risks into international trade and investment.
• E) is a natural function of supply and demand among currency traders.

---

Definitions:

Mood Molecule

A colloquial term often used to refer to serotonin, a neurotransmitter that is linked to regulating mood, emotions, and several other functions in the body.

Neurotransmitter

Substances that act as intermediaries, sending signals from one nerve cell to another neuron, muscle cell, or gland cell across a chemical synapse.

Dopamine

A neurotransmitter involved in reward, motivation, and pleasure systems in the brain, influencing both movement and emotional responses.

Serotonin

A neurotransmitter in the brain that contributes to feelings of well-being and happiness.