14-37 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 a currency.
E)advises customers on their international business.

Question

Quizplus · Accepted Answer

When the FI processes an exporter's transaction in a foreign currency, it acts as an agent facilitating the transaction for its customer, rather than taking a position for its own account.

14-37 the FI Is Acting as a FX Market Agent