BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Foreign Exchange markets are localized markets
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Foreign Exchange markets operate within a country’s time zone
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Foreign Exchange markets are dynamic and round the clock markets
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Foreign Exchange markets are used only for trade related transactions
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Detailed explanation-1: -Characteristics of the forex market The currency exchange rate is double since there is a price for the buyer and another for the seller. The purchase price is always less than the sale price since the difference makes it possible for the intermediary to benefit.
Detailed explanation-2: -The features of the foreign exchange market include it’s high liquidity, transparency, dynamism, 24 hour operation, low transaction cost, and a large bias towards towards the US dollar.
Detailed explanation-3: -The main functions of the market are to (1) facilitate currency conversion, (2) provide instruments to manage foreign exchange risk (such as forward exchange), and (3) allow investors to speculate in the market for profit.
Detailed explanation-4: -This involves the trading of various currencies worldwide. The traders in this market are free to buy or sell the currencies anytime as per their own choice. There is much clarity in this market. The traders in the foreign exchange market have full access to all market data and information.