ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a place where corporation and government can raise fund
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a market for converting currency of one country into another country
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trading of instrument by an exchange of securities
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None of the above
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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: -The foreign exchange market or forex market is the market where currencies are traded. The forex market is the world’s largest financial market where trillions are traded daily. It is the most liquid among all the markets in the financial world.
Detailed explanation-3: -Exchange rates are defined as the price of one country’s’ currency in relation to another country’s currency.
Detailed explanation-4: -Markets in which you can trade one kind of money for another are called currency markets or foreign exchange markets. The price at which you trade one currency for another is called the exchange rate.