Which of the Following Is Not True with Respect to Spot

question 45

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:

Specific Time

A distinct and set point or period in time designated for an event or deadline.

Indefinite

Lacking clear boundaries or limits; not clearly defined or determined.

Fine-Print Provisions

Small, often overlooked details or conditions in agreements or contracts that may have significant legal implications.

Standard Form Contracts

Pre-prepared legal agreements used in common transactions with fixed terms that are non-negotiable.