Which best explains how currency traders can buy large amounts of a currency with little money up front?

Group of answer choices:

A) They sell shares in their enterprise to provide investment capital.

B) They buy on margin to provide leverage for a large purchase.  

C) They purchase only currencies with a very low exchange rate.  

D) They use a bond issue to raise money for their trades.

The correct answer is letter "B": They buy on margin to provide leverage for a large purchase.

Explanation:

Margin accounts allow traders to make transactions by leveraging the real amount of money they have in their accounts. Most brokers offer a leverage of 2:1 which implies individuals can trade twice the real amount of money they have but the ratio varies from broker to broker. Some offer 100:1 leverage ratios.  

In such a way, traders can enter in larger positions increasing their profit chances but their losses as well. If the trade does not go as expected, traders may end up owing even more money to what they had in their accounts.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi