PART I: TRUE/FALSE/UNCERTAIN QUESTIONS: (60 marks) (4.63 marks each). Indicate whether the following statement is true, false or uncertain. You do not have to justify your answer,

8. The forward exchange market is essentially a mechanism for eliminating exchange risk. A small speculator buying or selling foreign exchange on a short-term basis in anticipation of exchange rate changes is more likely to use the futures market than the forward market