14-52 in Which of the Following FX Trading Activities Does

question 23

Multiple Choice

14-52 In which of the following FX trading activities does the FI not assume FX risk?

• A)The purchase and sale of foreign currencies for the purpose of profiting from forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers to partake in and complete international commercial trade transactions.
• C)The purchase and sale of foreign currencies for the purpose of offsetting customer exposure in any given currency.
• D)The purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.
• E)Answers B and D only.

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Definitions:

Overuse

The excessive or improper use of something, leading to damage or depletion, often related to physical injuries from repetitive actions or resources.

Trauma

Any injury, physical or mental.

Impacted

Refers to a fracture where the broken ends are jammed together.

Fracture

A break, typically in a bone, that occurs when an external force exceeds the strength of the bone.