Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)The market in which foreign currency is traded for future delivery is called the forward market for foreign exchange.
• B)The market in which foreign currency is traded for future delivery is called the future market for foreign exchange.
• C)The market in which foreign currency is traded for future delivery is called the spot market for foreign exchange.
• D)The market in which foreign currency is traded for future delivery is called the business market for foreign exchange.

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Definitions:

Capital Gains

The profit from the sale of assets such as stocks, bonds, or real estate, which exceeds the original purchase price.

Preferential Tax Treatment

Financial policies or regulations that reduce tax rates or alter tax policies in favor of certain businesses, industries, or transactions.

Capital Investments

Expenditures by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Mortgage Exemption

A provision in tax law or regulation that allows certain mortgage payments, interest, or property taxes to be excluded from taxable income.