Which of the Following Is Not True with Respect to Spot

question 32

Multiple Choice

Which of the following is not true with respect to spot market liquidity?

• A) The more willing buyers and sellers there are, the more liquid a market is.
• B) The spot markets for heavily traded currencies such as the Japanese yen are very liquid.
• C) A currency's liquidity affects the ease with which an MNC can obtain or sell that currency.
• D) If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate.

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Definitions:

Perfect Objectivity

An ideal state of being unbiased and impartial, free from personal feelings or opinions.

Paradigm Shift

A fundamental change in the basic concepts and experimental practices of a scientific discipline or other professional practice.

Fully Completed

Finished entirely, with all necessary parts or steps having been carried out.

Experimental Designs

The planning of experiments to test hypotheses, involving the manipulation of variables to observe their effects on certain outcomes.