ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Foreign exchange dealers
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Foreign exchange cartels
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Foreign exchange remittance
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Foreign exchange despository
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Detailed explanation-1: -These are the main groups: Commercial banks and investment banks; which generally act on their own behalf or based on the needs and interests of their clients. Brokers; who act as intermediaries between financial institutions or as links with private individuals, in exchange for a fee.
Detailed explanation-2: -Participants in these markets can buy, sell, exchange, and speculate on the relative exchange rates of various currency pairs. Foreign exchange markets are made up of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers, and investors.
Detailed explanation-3: -Major players in this market tend to be financial institutions like commercial banks, central banks, money managers and hedge funds. Global corporations use forex markets to hedge currency risk from foreign transactions.
Detailed explanation-4: -7.1 The Foreign Exchange Market The major players in the market are governments (usually through their central banks) and commercial banks. Firms such as manufacturers, exporters and importers, and individuals such as international travelers also participate in the market.