BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is buying of foreign currency
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It is selling of foreign currency
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It is buying of one currency and selling of another currency
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It is simultaneous buying of one currency and selling of another currency
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Detailed explanation-1: -What Is the Forex or FX? The foreign exchange market, commonly referred to as the Forex or FX, is the global marketplace for the trading of one nation’s currency for another. The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day.
Detailed explanation-2: -A foreign currency exchange rate is a price that represents how much it costs to buy the currency of one country using the currency of another country. Currency traders buy and sell currencies through forex transactions based on how they expect currency exchange rates will fluctuate.
Detailed explanation-3: -Foreign exchange refers to exchanging the currency of one country for another at prevailing exchange rates. Let us take a close look at the meaning of foreign exchange. Different countries have different currencies. Foreign exchange converts the currency of one country into another.
Detailed explanation-4: -Forex, or foreign exchange, may be defined as a network of buyers and sellers who exchange currencies at an agreed-upon price. Hence, Foreign currency trading is the process through which people, businesses, and central banks exchange one currency for another.
Detailed explanation-5: -The forex market is open on many holidays on which stock markets are closed, though the trading volume may be lower. Its name, forex, is a portmanteau of foreign and exchange. It’s often abbreviated as fx.