14-45 Which of the following factors help explain the decline in FX trading in the early years of this century?
A)Introduction of the euro.
B)Consolidation in the banking industry.
C)Growth of electronic brokering.
D)Mergers in the corporate sector.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the factors listed - introduction of the euro, consolidation in the banking industry, growth of electronic brokering, and mergers in the corporate sector - contributed to the decline in FX trading in the early years of this century. The introduction of the euro led to a reduction in currency pairs traded, consolidation in the banking industry reduced the number of companies trading currencies, growth of electronic brokering increased competition and reduced margins, and mergers in the corporate sector reduced the need for large currency transactions.

14-45 Which of the Following Factors Help Explain the Decline