One Reason for the Multicurrency Clause in the Euro Markets

question 19

Multiple Choice

One reason for the multicurrency clause in the euro markets is to avoid

• A)government actions to block funds
• B)local traders from arbitraging away profits
• C)exchange rate risk
• D)political instability

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Definitions:

Permanent/Temporary

This refers to the nature of employment or status of objects wherein 'permanent' indicates indefinite duration and 'temporary' indicates a fixed duration.

Normal Balance

Normal Balance is the side (debit or credit) where increases to the account are recorded, depending on the account type.

Permanent/Temporary

Describes accounts in financial reporting; permanent accounts show ongoing financial status, while temporary accounts track revenues, expenses, and dividends over a specific period.

Normal Balance

The side (debit or credit) of an account that increases its balance, reflecting the account's role in the accounting equation.