The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to
A)greater liquidity of assets
B)greater volatility of rates
C)lesser volatility of rates
D)lesser liquidity of assets

Question

Quizplus · Accepted Answer

Greater fluctuations in the portfolio value of foreign exchange typically lead to greater volatility of rates, as these fluctuations reflect changes in currency values and can affect the exchange rates between currencies.

The Larger Fluctuations in Portfolio Value of Foreign Exchange of Financial