Most profits or losses on foreign trading for FIs come from
A)open positions or speculation.
B)market making.
C)acting as agents for retail customers.
D)acting as agents for wholesale customers.
E)hedging activities.

Question

Quizplus · Accepted Answer

Foreign trading profits or losses for FIs typically come from open positions or speculation, as these involve taking on risk in the hopes of gaining a profit or avoiding a loss. Market making, acting as agents for customers, and hedging activities can also generate profits or losses, but they are not typically as significant as open positions or speculation.

Most Profits or Losses on Foreign Trading for FIs Come