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

question 20

Multiple Choice

If a currency's spot rate 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)illiquid; highly sensitive
• D)none of the above

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Definitions:

Incorporation

The process of legally defining a company as a separate entity from its owners, providing limited liability and other benefits.

Provincial Legislation

Laws and regulations enacted by the legislative bodies of provinces or territories within a federal system, addressing regional matters.

Actual Authority

The express and implied powers given to an agent by a principal, allowing them to make legally binding decisions on the principal’s behalf.

Apparent Authority

Apparent authority refers to a situation where someone reasonably believes another has the authority to act on behalf of an organization due to the organization's actions or communications.