Which of the Following Are Common FX Trading Activities

question 54

Multiple Choice

Which of the following are common FX trading activities?

• A)The purchase and sale of foreign currencies for speculative purposes through forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers (or the FI itself) to take positions in foreign real and financial investments.
• C)The purchase and sale of foreign currencies for hedging purposes to offset customer (or FI) exposure in any given currency.
• D)All of the listed options are correct.

Determine cost drivers and their impact on product or service costing.

Calculate customer and product margins using activity-based costing data.

Understand capacity analysis and its implications for business cost management.

Apply ABC data to make informed decisions about pricing, overhead, and resource allocation.

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Definitions:

Long-run Equilibrium

A state in economics where all factors of production and market forces are balanced, and there are no external pressures inducing change.

Output

Output refers to the total amount of goods and services produced by a company, industry, or economy within a specific period.

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products or services, allowing for some degree of market power and price control.

Economic Profits

Profits earned by a firm after accounting for both explicit and implicit costs.