Which of the Following Is NOT a Motivation Identified by the Authors

question 64

Multiple Choice

Which of the following is NOT a motivation identified by the authors as a function of the foreign exchange market?

• A) the transfer of purchasing power between countries
• B) obtaining or providing credit for international trade transactions
• C) minimizing the risks of exchange rate changes
• D) All of the above were identified as functions of the foreign exchange market.

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Definitions:

Residual Income

The income remaining after deducting all expenses, taxes, and costs of capital from net operating income.

Investment Opportunity

An investment opportunity refers to any situation where an individual or organization can invest in something with the potential for financial return.

Minimum Required Rate

The lowest return on investment or interest rate desired by an investor or required by a regulator or policy.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the return of an investment by its cost.