Choose the correct statements. 1. Foreign currency is always in the form of note
ID: 1121998 • Letter: C
Question
Choose the correct statements. 1. Foreign currency is always in the form of notes or coins. 2. The foreign exchange market is the market in which the currency of one country is exchanged for the currency another 3. The foreign exchange market is made up of thousands of people including international tourists and foreign exchange brokers. 4. A fall in the exchange rate is called a devaluation of the dollar. A. Statements 2 and 3 are correct. B. Statements 1 and 3 are correct. ° C. Statements 3 and 4 are correct. D. Statements 1 and 4 are correctExplanation / Answer
Statements 2 and 3 are correct.
Statement 1 is false because foreign currency can also be in the form of travelers checks.
Statement 4 is false because devaluation means that a country lowers the worth or value of its currency. A country uses government money to buy and sell the currency to try and fix where it feels the currency should be set.