If a Currency's Spot Market Is ____, Its Exchange Rate

question 47

Multiple Choice

If a currency's spot market is ____, its exchange rate is likely to be ____ to a single large purchase or sale transaction.

• A) liquid; highly sensitive
• B) illiquid; insensitive
• C) liquid; insensitive
• D) none of the above

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Definitions:

IFRS

Rephrased: The International Financial Reporting Standards, a global framework for financial reporting, utilized by companies for the preparation of financial statements.

Net Realizable Value

The estimated selling price of goods, minus the cost of their sale or disposal, representing what a company can expect to receive.

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.