Which of the Following Is a Reason for the Decline

question 77

Multiple Choice

Which of the following is a reason for the decline in FX trading?

• A)The number of FX traders has decreased due to mergers of investment banks.
• B)Advancements in technology have increased the efficiency of each FX trader, reducing the need for as many.
• C)The move towards a single currency in Europe has reduced the need for FX trading.
• D)All of the listed options are correct.

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Working Capital

Current assets less current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Acid-Test Ratio

A financial ratio indicating a firm's capacity to settle short-term debts without having to sell its stock.