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Which of the Following Is Not True with Respect to Spot

Question 91

Multiple Choice

Which of the following is not true with respect to spot market liquidity?


A) The more willing buyers and sellers there are, the more liquid a market is.
B) The spot markets for heavily traded currencies such as the Japanese yen are very liquid.
C) A currency's liquidity affects the ease with which an MNC can obtain or sell that currency.
D) If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate.

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