Question

(True or False?)

1. Some currency transactions are utilized as "hedge vehicles" for large purchase transactions or protecting a speculative investment position

2. While the largest number of foreign exchange futures and options are speculative, these transactions can be very risky

3. International trade has increased twice as fast as the growth rate in GDP, providing a pathway to prosperity for many countries and their citizens.

4. The forward market for financial currencies is defined as contracting today for the future purchase or sale of foreign currency in the future.

5. From an opportunity perspective multinational firms can achieve greater scales of economy when they deploy assets on a global basis

Answer 1

1. Some currency transactions are utilized as "hedge vehicles" for large purchase transactions or protecting a speculative investment position - True.

2. While the largest number of foreign exchange futures and options are speculative, these transactions can be very risky - True.

3. International trade has increased twice as fast as the growth rate in GDP, providing a pathway to prosperity for many countries and their citizens. - True.

4. The forward market for financial currencies is defined as contracting today for the future purchase or sale of foreign currency in the future. - True.

5. From an opportunity perspective multinational firms can achieve greater scales of economy when they deploy assets on a global basis - True.