Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as an agent of its customers for a fee and does assume part of the FX risk.
• B)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as an agent of its customers for a fee but does not assume any of the FX risk.
• C)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as a hedger to reduce the FX exposure.
• D)In case an FI purchases or sells foreign currencies to allow customers to partake in and complete international commercial trade transactions, the FI acts as an agent of its customers for a fee and as a hedger to reduce the FX exposures.

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Definitions:

Clear Objectives

Precisely defined goals or targets that an individual, group, or organization aims to achieve.

Standards of Conduct

Guidelines and expectations for behavior within a professional setting, aiming to ensure ethical and respectful interactions.

Social Media Policy

A Social Media Policy outlines the guidelines and protocols for how an organization and its employees should conduct themselves online, including content sharing, privacy, and communication etiquette to protect brand reputation.

Online Statements

Digital versions of account summaries, transactions, or bills, typically accessed via internet banking or online platforms, allowing users to view, download, or print them.