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:

U.S. Goods

Products and commodities that are produced, manufactured, or grown within the United States.

Japanese Economy

The economic system of Japan, characterized by its large industrial capacity, emphasis on technology, and robust export sector.

Exchange Rate

The value of one currency for the purpose of conversion to another currency.

U.S. Dollar

The official currency of the United States of America, widely used for domestic and international transactions.