ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -foreign exchange market (forex, or FX, market), institution for the exchange of one country’s currency with that of another country. Foreign exchange markets are actually made up of many different markets, because the trade between individual currencies-say, the euro and the U.S. dollar-each constitutes a market.

Detailed explanation-2: -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-3: -Foreign exchange is also called forex in short. We have seen what foreign exchange is. We will go through the advantages of foreign exchange. Foreign exchange is required for international trade.

Detailed explanation-4: -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-5: -Exchange rates are defined as the price of one country’s’ currency in relation to another country’s currency.