There are two different types of FX dealers:those that offer to buy currencies at a particular price and those that offer to sell currencies at a particular price.

FOREIGN CURRENCY MARKETS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	True
B	False
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -Exchange rates of a currency can be either fixed or floating. Fixed exchange rate is determined by the central bank of the country while the floating rate is determined by the dynamics of market demand and supply.

Detailed explanation-2: -Different spreads for a currency pair imply disparities between the bid and ask prices. Currency arbitrage involves buying and selling currency pairs from different brokers to take advantage of the mispriced rates.

Detailed explanation-3: -Spot Forex Market: The spot market is the immediate exchange of currencies at the current exchange. Forward Forex Market: The forward market involves an agreement between the buyer and seller to exchange currencies at an agreed-upon price at a set date in the future. More items •14-Sept-2022

Detailed explanation-4: -Forex Dealers. Forex dealers are amongst the biggest participants in the Forex market. Brokers. The Forex market is largely devoid of brokers. Hedgers. Speculators. Arbitrageurs. Central Banks. Retail Market Participants.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

FOREIGN CURRENCY MARKETS