When Purchasing and Selling Foreign Currencies to Allow Customers to Take

question 32

Multiple Choice

When purchasing and selling foreign currencies to allow customers to take positions in foreign real and financial investments, the FI

• A)acts defensively as a hedger.
• B)acts aggressively as a speculator.
• C)assumes the FX risk itself.
• D)acts as an agent.
• E)acts as a market maker.

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Definitions:

Data Rate

The speed at which data is transmitted, usually measured in bits per second (bps).

Bits Per Second

A measurement of data transmission speed in digital communication systems, indicating the number of bits transmitted per second.

Token Passing

"A technique in which tokens are circulated among nodes in a communication network."