Which of the Following Statements Is Incorrect

question 24

Multiple Choice

Which of the following statements is incorrect?

• A) Forward contracts are contracts typically negotiated with a commercial bank that allow the purchase or sale of a specified amount of a particular foreign currency at a specified exchange rate on a specified future date.
• B) The forward market is located in New York City.
• C) Many of the commercial banks that offer foreign exchange on a spot basis also offer forward transactions for the widely traded currencies.
• D) Forward contracts can hedge a corporation's risk that a currency's value may appreciate over time.

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Definitions:

Hereditary Leadership

A system of governance or organizational leadership where authority is passed down through family lines.

Traditional Authority

Traditional authority is a form of leadership in which power is derived from established customs, cultural heritage, and historical precedence.

Tertiary Sector

A segment of the economy focused on providing services rather than producing goods, including sectors like retail, entertainment, and financial services.

Self-employed

A status referring to individuals who work for themselves, either by owning a business or by offering their services independently.