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Questions and Answers
The foreign exchange market is a physical market with a centralized location.
The foreign exchange market is a physical market with a centralized location.
False
The forex market is the largest and most liquid market in the world.
The forex market is the largest and most liquid market in the world.
True
In 2013, the FX market recorded USD3.5T as a single largest market transaction in the world.
In 2013, the FX market recorded USD3.5T as a single largest market transaction in the world.
False
Market makers are responsible for buying securities at a given price.
Market makers are responsible for buying securities at a given price.
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Price takers are responsible for setting the prices of securities.
Price takers are responsible for setting the prices of securities.
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The forex market is traded in only six major financial centers around the world.
The forex market is traded in only six major financial centers around the world.
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In an FX cash flow, the direction can be either inflow or outflow and indicates the currency bought and sold.
In an FX cash flow, the direction can be either inflow or outflow and indicates the currency bought and sold.
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A commodity currency is a currency that is widely traded in the forex market.
A commodity currency is a currency that is widely traded in the forex market.
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The reciprocal currency always involves the USD as the base currency.
The reciprocal currency always involves the USD as the base currency.
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A two-way quote represents the current bid price of a security only.
A two-way quote represents the current bid price of a security only.
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The ask price represents the maximum price that a seller is willing to take for a security.
The ask price represents the maximum price that a seller is willing to take for a security.
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The forward value date is always two days after the transaction date.
The forward value date is always two days after the transaction date.
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