It Is Common Practice Among Currency Traders Worldwide to Both

question 95

Multiple Choice

It is common practice among currency traders worldwide to both price and trade currencies against the U.S. dollar. Consider a currency dealer who makes a market in 5 currencies against the dollar. If he were to supply quotes for each currency in terms of all of the others, how many quotes would he have to provide?

• A)36
• B)30
• C)60
• D)120
• E)None of the above

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Definitions:

Productivity

The efficiency with which inputs are converted into outputs in a production process, often measured as the ratio of output to input over a specific period.

Income Distribution

The way in which the total income of an economy is distributed among its population.

Rich

Having a great deal of wealth, assets, or resources; affluent.

Poor

Individuals or communities that lack financial resources and essentials for a minimum standard of living.