The Foreign Exchange Market

question 22

Multiple Choice

The foreign exchange market:

• A)is not located in any one place.
• B)is located in New York City.
• C)has offices in Australia,Japan,France,Germany,the USA and the UK.
• D)is located in Rome.

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Definitions:

Initial Investment

refers to the initial amount of money invested in a project or venture to get it started.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project, where a value above 1 indicates a profitable project.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Initial Investment

The amount of money used to start a project, purchase assets, or establish a business foundation.