Which of the Following Are Common FX Trading Activities

question 54

Multiple Choice

Which of the following are common FX trading activities?

• A)The purchase and sale of foreign currencies for speculative purposes through forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers (or the FI itself) to take positions in foreign real and financial investments.
• C)The purchase and sale of foreign currencies for hedging purposes to offset customer (or FI) exposure in any given currency.
• D)All of the listed options are correct.

---

Definitions:

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at their fair market value.

Accounts Receivable

Funds that clients or customers owe to a business for products or services they have received but have not yet paid for.

Inventory Purchases

This term is related to the buying of goods and materials by a company that are intended to be sold in the course of business.

Accounts Payable

The amounts a company owes to suppliers or vendors for goods or services received but not yet paid for.