ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Firms/Corporations, Central Banks, Individual Traders, Financial Institutions, Commercial Banks, Investment Hedge Funds
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Market Selling, Central Banks, Individual Traders, Financial Institutions, Commercial Banks, Financial Institutions
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Central Banks, Fast Food Chains Individual Traders, Financial Institutions, Commercial Banks, Commercial Enterprises
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Central Banks, Fast Food Chains Individual Traders, Financial Institutions, Commercial Banks, Business Enterprises
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Detailed explanation-1: -It is decentralized in a sense that no one single authority, such as an international agency or government, controls it. The major players in the market are governments (usually through their central banks) and commercial banks.
Detailed explanation-2: -Three are three key types of forex markets: spot, forward, and futures.
Detailed explanation-3: -Commercial & Investment Banks Banks facilitate forex transactions for clients and conduct speculative trades from their own trading desks. When banks act as dealers for clients, the bid-ask spread represents the bank’s profits. Speculative currency trades are executed to profit on currency fluctuations.
Detailed explanation-4: -Commercial and Investment Banks. Central Banks. Businesses and Corporations. Fund Managers, Hedge Funds, and Sovereign Wealth Funds. Internet-based Trading Platforms. Online Retail Broker-Dealers.