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: -international payment and exchange, international exchange also called foreign exchange, respectively, any payment made by one country to another and the market in which national currencies are bought and sold by those who require them for such payments.

Detailed explanation-3: -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-4: -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.