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What is the main function of the foreign exchange market?
What is the main function of the foreign exchange market?
- Managing international trade agreements
- Regulating global interest rates
- Facilitating the buying and selling of stocks
- Determining foreign exchange rates for every currency (correct)
Who are the main participants in the foreign exchange market?
Who are the main participants in the foreign exchange market?
- Larger international banks (correct)
- Government regulatory agencies
- Individual cryptocurrency traders
- Small retail investors
How does the foreign exchange market determine a currency's value?
How does the foreign exchange market determine a currency's value?
- By analyzing the country's GDP
- By setting the market price of one currency if paid for with another (correct)
- By consulting with government authorities
- By considering the currency's historical significance
What is the role of 'dealers' in the foreign exchange market?
What is the role of 'dealers' in the foreign exchange market?
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What is the term used to describe the behind-the-scenes market involving banks and financial firms in foreign exchange trading?
What is the term used to describe the behind-the-scenes market involving banks and financial firms in foreign exchange trading?
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