Which One of the Following Features Is Not Part of the Interbank

question 10

Multiple Choice

Which one of the following features is not part of the interbank foreign exchange market?

• A) derivative securities such as foreign currency futures and options
• B) trade in swaps and forward contracts
• C) immediate exchanges of monies
• D) non-strategic loans

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Definitions:

Disposable Income

The sum of funds a family can use for expenditures and savings once income taxes are deducted.

APC

Average Propensity to Consume (APC) is a measure of the fraction of income spent on consumption rather than saving in an economy.

Disposable Income

Discretionary income for households to utilize in their saving and spending after the enforcement of income taxes.

Consumption

Refers to the use of goods and services by households or individuals for personal needs or for leisure, as opposed to investment or savings.