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Investments glossary

Functional Currency


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Oil prices will keep breaking new records until other countries move to nuclear and alternative energy sources or we discover massive new reserves and increase production dramatically over the next few years.

— Med Jones

Popular with multinationals, functional currency represents the primary economic environment in which an entity generates cash and expends cash. Functional currency is the primary currency used by a business or business unit. As a monetary unit of account, a functional currency represents the primary economic environment in which that entity operates.

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