ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Transfer Functions
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Creadit Functions
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Hedging function
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All of these
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Detailed explanation-1: -The foreign exchange market performs credit, hedging, and transfer functions.
Detailed explanation-2: -The main function of foreign exchange is to transfer money between countries. The foreign bill of exchange is the instrument normally used. The instrument most in use in foreign payments is the Telegraphic Transfer (T. T).
Detailed explanation-3: -Three are three key types of forex markets: spot, forward, and futures.
Detailed explanation-4: -The foreign exchange market is the marketplace in which participants are able to sell, purchase, exchange and theorize on currencies. Foreign exchange markets are made up of investment management firms, banks, central banks, hedge funds, commercial companies and investors and retail forex brokers.
Detailed explanation-5: -To transfer finance, purchasing power from one nation to another. To provide credit for international trade. To make provision for hedging facilities, i.e., to facilitate buying and selling spot or forward foreign exchange.