The ________ is the mechanism by which participants transfer purchasing power between countries, obtain or provide credit for international trade transactions, and minimize exposure to the risks of exchange rate changes.
A) futures market
B) federal open market
C) foreign exchange market
D) LIBOR

Question

Quizplus · Accepted Answer

The foreign exchange market is specifically designed for participants to transfer purchasing power between countries, obtain or provide credit for international trade transactions, and minimize exposure to the risks of exchange rate changes. The futures market deals with contracts for the future delivery of goods, while the federal open market is a mechanism used by the Federal Reserve to manage the money supply and interest rates in the U.S. economy. LIBOR (London Interbank Offered Rate) is an interest rate at which banks can borrow funds from other banks in the London interbank market.

The ________ Is the Mechanism by Which Participants Transfer Purchasing