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True/False/Uncertain Please make a short explanation to support your answer (in less than 5 lines). There is no partial credit for the correct answer without
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Please make a short explanation to support your answer (in less than 5 lines). There is no partial credit for the correct answer without correct explanations. If the part of the statement is false, then the whole statement is false.
Q.For the spot exchange rate, the default risk (or settlement risk) had been low until 1970s but has increased dramatically since then. As a result, FX traders nowadays use derivates to hedge this risk.
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