What Percent of Currency Transactions Involve a Trade in the Spot

question 83

Multiple Choice

What percent of currency transactions involve a trade in the spot market?

• A) 30%
• B) 40%
• C) 60%
• D) 80%

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Definitions:

Foreign Operation

A subsidiary, associate, joint venture, or branch of a company that is located in a country different from the one where the parent company operates.

Presentation Currency

The currency in which a company's financial statements are presented.

Non-Monetary Items

Assets or liabilities that are not easily quantified in monetary terms, such as goodwill, patents, or real estate.

Functional Currency

The currency of the primary economic environment in which the company predominantly generates and expends cash.