BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a market where only Foreign currency is used.
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It is a market where foreign currencies are bought and sold simultaneously.
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It is a physical market where only foreigners are allowed.
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None of the Above
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Detailed explanation-1: -Q. Which of the following correctly define the Foreign Exchange (Forex) Market? Answer: [B] It is a market where foreign currencies are bought and sold simultaneously.
Detailed explanation-2: -The foreign exchange market or forex market is the market where currencies are traded. The forex market is the world’s largest financial market where trillions are traded daily. It is the most liquid among all the markets in the financial world.
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: -Answer» C. The futures market is mainly used by speculators while the forward market is mainly used for hedging.
Detailed explanation-5: -The foreign exchange (forex) market is the largest and most liquid asset market on earth, trading 24/7 around the globe. There is actually no central location for the forex market-it is a distributed electronic marketplace with nodes in financial firms, central banks, and brokerage houses.