Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A)FX trading is becoming increasingly popular globally.
• B)FX trading has become redundant due to stable foreign exchange rates.
• C)FX trading is a popular tool to generate profits, as there is little risk involved.
• D)The number of FX traders has decreased over the years due to merger activities and as a consequence the number of FX transactions has decreased over time.

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Definitions:

Stock Holdings

The shares owned by an individual or corporation, including stocks in companies or corporations as part of an investment portfolio.

Random Walk Theory

A financial theory suggesting that stock prices change randomly and are not influenced by past movements, making it impossible to predict future market directions consistently.

Stock Prices

The cost of purchasing a share of equity in a company at any given time on the stock market.

Real Rate Of Return

The profit or loss on an investment adjusted for inflation, representing the actual buying power of the earnings.