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:

Marketing Plan

A comprehensive document that outlines a company's overall marketing efforts, including strategies, objectives, and activities to achieve them.

Corporate Mission Statement

A concise declaration of a company’s core purpose and focus that normally remains unchanged over time, guiding its strategic decisions and organizational culture.

Financial and Profit Model

A theoretical construct that represents the economic operations of a business, detailing how revenue is generated, costs are incurred, and profits are made.

Situation Assessment

The process of evaluating the current state of an environment or situation to inform decision-making and strategy formulation.