Respuesta :
Marked-to-market involves the trading of futures contracts in major currencies and offering price transparency and efficiency in addition to elimination of counterparty risk due to guaranteed payments on contracts. [FALSE]
About Marked-to-market
Investment instruments such as bonds and stocks are generally traded on the market so there are always changes or price fluctuations. Considering that these characteristics provide investors with potential gains and losses, each investment portfolio containing instruments that experience price fluctuations must be recorded at prices formed on the market, not book values. This mechanism, namely recording the price or value of a security, portfolio or account to reflect the latest market value is known as Marked To Market.
Why is Market To Market needed
Every investor has the desire to invest or withdraw their funds at different times. In order not to harm the investor concerned or other investors who are still in the portfolio, every purchase or withdrawal of funds must truly reflect the fair value that actually occurs in the market, that's why Marked To Market is used. The application of Market To Market in portfolio valuation makes the profits or losses experienced by investors truly reflect the profits or losses that occur due to price changes in the market, not due to price manipulation made by the investment manager.
Learn more about marked-to-market https://brainly.com/question/14187235.
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