Identify a Main Function of the Foreign Exchange Market

question 91

Multiple Choice

Identify a main function of the foreign exchange market.

• A)Provide some insurance against foreign exchange risk.
• B)Prevent one-way movement of a currency with respect to another.
• C)Ensure that currencies are not volatile.
• D)Eliminate foreign exchange risk for companies involved in international trade.

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Definitions:

Few Benefits

Limited advantages or positive aspects of a situation, often contrasting with expectations or needs.

Single-mother Families

Households led by a woman raising her children without the presence or involvement of the father or another partner.

Deprived Economically

The condition of lacking economic resources or access to financial opportunities that are necessary for a basic standard of living.

Father Leaves

A situation where a father physically and/or emotionally exits the family unit, leaving a gap in parental care and involvement.