The FI is acting as a FX market agent for its customers when it
A)buys or sells currency to balance the FI's net exposure.
B)takes a nonzero net position in a particular currency.
C)processes an exporter's transaction in a foreign currency.
D)makes a market in its domestic currency.
E)advises customers on their international business.

Question

Quizplus · Accepted Answer

When a Financial Institution (FI) processes an exporter's transaction in a foreign currency, it is acting as a foreign exchange (FX) market agent for its customers. This involves converting the foreign currency into the exporter's domestic currency or vice versa, facilitating international trade for the customer.

The FI Is Acting as a FX Market Agent for Its