ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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exchanging with your neighbor
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exchanging with another country
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exchanging money with a store
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depositing money in your bank account
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Detailed explanation-1: -Foreign exchange, also known as forex, is the conversion of one country’s currency into another. The value of any particular currency is determined by market forces related to trade, investment, tourism, and geopolitical risk.
Detailed explanation-2: -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-3: -a market in which one currency is exchanged for another currency; for example, in the market for Euros, the Euro is being bought and sold, and is being paid for using another currency, such as the yen.
Detailed explanation-4: -The foreign exchange, or Forex, is a decentralized marketplace for the trading of the world’s currencies. The forex market is where banks, funds, and individuals can buy or sell currencies for hedging and speculation.
Detailed explanation-5: -The foreign exchange markets play a critical role in facilitating cross-border trade, investment, and financial transactions. These markets allow firms making transactions in foreign currencies to convert the currencies or deposits they have into the currencies or deposits they want.