Which of the Following Is NOT Characteristic of an Organized

question 32

Multiple Choice

Which of the following is NOT characteristic of an organized exchange?

• A) it may be either national or regional
• B) it functions as a primary market
• C) previously issued stock are traded by investors
• D) in foreign exchanges prices are quoted in local currency

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Definitions:

Exchange Differences

Financial discrepancies that arise from converting transactions made in foreign currencies into the reporting currency.

Revaluation

The process of adjusting the book value of a capital asset to reflect its current market value.

Interest Paid

The amount of money paid by a borrower to a lender over a specified time period for the use of borrowed funds.

Foreign Exchange Risk

The potential for loss due to fluctuations in foreign exchange rates affecting the value of foreign currency-denominated transactions.