Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A)An open position is a hedged position in a particular currency.
• B)An open position is an unhedged position in a particular currency.
• C)An open position is an unhedged position in an open market.
• D)An open position is a hedged position in an open market.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers balances the quantity supplied by producers, resulting in a stable market condition.

Suppliers

Businesses or individuals that provide goods or services to another entity, often in exchange for monetary compensation.

Surpluses

Occurs when the quantity supplied of a product exceeds the quantity demanded, often leading to a drop in prices.

Price Up

An increase in the cost of goods or services in the market.