Most foreign exchange transactions are carried out
A) by tourists.
B) by importers.
C) for financial or speculative purposes.
D) by coin collectors.

Question

Quizplus · Accepted Answer

Foreign exchange transactions are mostly carried out for financial or speculative purposes, such as buying and selling currencies to make a profit or hedge against currency risks. Tourists and coin collectors may also participate in foreign exchange, but their transactions are relatively small compared to those for financial or speculative purposes. Importers may also engage in foreign exchange, but it is not the primary reason for most foreign exchange transactions.

Most Foreign Exchange Transactions Are Carried Out