ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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times less than the volume of trading in the US stocks.
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percent of the total volume of stocks trading.
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times more than the volume of trading in the US stocks.
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None of the above
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Detailed explanation-1: -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-2: -Volume of assets The stock market opportunities are endless, however, it does not come close to forex trade volume of around $5 billion per day.
Detailed explanation-3: -At $2.1 trillion per day in April 2022, turnover in FX spot markets accounted for 28% of global turnover (all instruments), a slightly lower share compared with 2019 (Graph 1).
Detailed explanation-4: -According to a Bank of International Settlements (BIS) estimate, the daily volume of spot exchange transactions is about 50 per cent of the total transactions of exchange markets.