Which of the following correctly describes a foreign exchange market?
A)A place where foreign goods are bought and sold in any country.
B)A market where foreign tourists can buy domestic goods.
C)A global market where people exchange one currency for another.
D)A bank in New York city that trades in gold certificates.
E)The central banks of different countries that control the supply of currencies.

Question

Quizplus · Accepted Answer

A foreign exchange market is a global marketplace where people buy and sell different currencies. It is used for international trade and investment purposes, as people need to exchange one currency for another to conduct business across borders. The foreign exchange market is also known as the forex market or FX market. Options A and B describe domestic markets, while option D is describing a specific bank and option E is describing central banks, which are not the same as the foreign exchange market.

Which of the Following Correctly Describes a Foreign Exchange Market