___________ Is the Effect on Exchange Rates When Traders Alter

question 39

Multiple Choice

___________ is the effect on exchange rates when traders alter quotes to maintain a balance between amounts of currency bought and sold to "square off" at the end of a day.

• A) Inventory control effect
• B) Inside information effect
• C) Order flow effect
• D) Asymmetric information effect

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Definitions:

Deferral

An accounting principle where revenue or expenses are recognized at a later date than when they were initially incurred.

Nominal Accounts

Accounts that are closed at the end of every accounting period, which include revenues, expenses, gains, and losses.

Real Accounts

Permanent accounts in accounting that show the ongoing financial state of a company's assets, liabilities, and shareholders' equity.

Accounting Period

A specific period of time used for financial reporting, such as a month, quarter, or year.