Which of the Following Describes the Way the Futures Price

question 8

Multiple Choice

Which of the following describes the way the futures price of a foreign currency is quoted by the CME group?

• A) The number of U.S. dollars per unit of the foreign currency
• B) The number of the foreign currency per U.S. dollar
• C) Some futures prices are always quoted as the number of U.S. dollars per unit of the foreign currency and some are always quoted the other way round
• D) There are no quotation conventions for futures prices

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Definitions:

Monetary Growth

The increase in the money supply in an economy over time, which can influence inflation rates, interest rates, and economic growth.

Open Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.

Vault Cash

Physical currency held by banks within their vaults, used to meet customer withdrawals and other cash needs.