ECONOMICS
FOREIGN CURRENCY MARKETS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
US dollars worth of currency is traded every day.
|
|
|
Euros worth of currency is traded every day.
|
|
|
US dollars worth of currency is stolen every day.
|
|
|
None of the above
|
Detailed explanation-1: -According to the Bank for International Settlements, the preliminary global results from the 2022 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged US$7.5 trillion per day in April 2022.
Detailed explanation-2: -The foreign exchange or forex market is the largest financial market in the world – larger even than the stock market, with a daily volume of $6.6 trillion, according to the 2019 Triennial Central Bank Survey of FX and OTC derivatives markets.
Detailed explanation-3: -IC Markets is the largest forex broker by trading volume, with over $774 billion in forex trading volume in the third quarter of 2021 alone, according to data compiled by Finance Magnates. IC Markets is also well-known as an excellent option for algorithmic traders due to its great pricing and execution.
Detailed explanation-4: -Firstly, the US is the world’s largest economy and a powerhouse in international trade. Secondly, the US dollar is the world’s primary ‘reserve currency’, held by central and commercial banks for the purposes of international transactions and investment – estimated to make up nearly 63% of currency reserves by volume.