ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The two major types of transactions in foreign exchange markets are:
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retail and wholesale transactions.
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futures and options transactions.
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transactions involving buying and selling of currencies.
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spot and forward transactions.
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None of the above.
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Explanation:
Detailed explanation-1: -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-2: -Spot Forex Market: The spot market is the immediate exchange of currencies at the current exchange. Forward Forex Market: The forward market involves an agreement between the buyer and seller to exchange currencies at an agreed-upon price at a set date in the future. More items •14-Sept-2022
Detailed explanation-3: -Spot Transactions. Forward Transactions. Future Transaction. Swap Transactions. Option Transactions. 27-May-2022
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