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Questions and Answers
What is a currency?
What is a currency?
- A form of money issued by a government (correct)
- A type of stock
- A basic good used in commerce
- A type of bond
What is the advantage of trading currencies?
What is the advantage of trading currencies?
- Natural safeguards against inflation
- Associated positively with equities and bonds
- Low volatility
- Largest market in the world in terms of trading volume (correct)
What is the disadvantage of investing in commodities?
What is the disadvantage of investing in commodities?
- Impractical to invest directly considering storage, transportation and insurance costs involved (correct)
- Volatile and trades 24-hours a day
- Has a large market in terms of trading volume
- Uses margin trading which allows clients to bet more than their capital
