Currency transformation is an important service because
A) most Surplus spending units (SSUs) want to invest in more than one currency
B) all financial institutions operate internationally
C) few ordinary investors care to hold claims denominated in foreign currency
D) Deficit spending units (DSUs) can't export unless they borrow in the currency of the importing country

Question

Quizplus · Accepted Answer

Currency transformation is important because few ordinary investors want to hold claims in foreign currencies due to the risks and complexities involved, so financial institutions provide services to manage these currency risks.

Currency Transformation Is an Important Service Because