The Trading of Forward FX Contracts by FX Dealers

question 102

Multiple Choice

The trading of forward FX contracts by FX dealers:

• A)exposes them to FX risk
• B)exposes them to interest rate risk
• C)requires they borrow funds to invest in securities in the currencies they supply
• D)requires they borrow funds in the currencies they supply
• E)requires they predict future movements in FX spot prices.

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Definitions:

Unethical Behavior

Actions or practices that violate moral or professional guidelines, often to gain personal benefit or advantage.

Mentally Manipulate

The act of influencing or controlling someone's mind or behavior through psychological techniques.

Michael LeBoeuf

An American business author and former management professor known for his writings on business and management.

Customers Buy

The action or process of consumers purchasing goods or services for personal use or consumption.