Dealers in Foreign Currency Do NOT

question 110

Multiple Choice

Dealers in foreign currency do NOT:

• A)need to hold amounts of foreign currency
• B)hold their FX reserves in foreign currency cash and shares
• C)make many deals each trading day
• D)calculate daily the net amount of FX they require in the future to settle their FX obligations
• E)hold high-quality securities denominated in foreign currencies.

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Definitions:

Demand

The quantity of a specific good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Supply

The total amount of a specific good or service that is available to consumers at a given time and price.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.