Multiple Choice
Which of the following is NOT a function of the interbank part of the foreign exchange market?
A) Provides a bank with a continuous stream of information on conditions in the foreign exchange market
B) Provides a bank the means to readjust its own position quickly and at low cost when it separately conducts a large trade with a customer
C) Permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future
D) Provides clearing services for organizations that prefer to use different currencies
Correct Answer:

Verified
Correct Answer:
Verified
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Q14: Under a fixed exchange rate system, a
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Q18: Exchange rates are equalized in different locations
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