Which of the Following Statements Regarding Foreign Exchange Markets Is

Multiple Choice

Which of the following statements regarding foreign exchange markets is most correct?

A) Foreign exchange markets are "free" of government interferences.
B) Foreign exchange brokers act as agents in currency transactions and often take direct positions in transactions.
C) Anonymity is important for the parties of a brokered currency transaction because knowledge of the parties might affect the quote offered.
D) Currency speculation is not a major concern for central and commercial bank managers, and hence little of the bank's risk management program deals with currency risk.
E) None of the above statements correctly characterize foreign exchange markets.