Which of the following may be participants in the foreign exchange markets?
A) bank and nonbank foreign exchange dealers
B) central banks and treasuries
C) speculators and arbitrageurs
D) all of the above

Question

Quizplus · Accepted Answer

All of the mentioned entities can participate in the foreign exchange markets. Bank and nonbank foreign exchange dealers facilitate the buying and selling of currencies between parties. Central banks and treasuries may participate in the forex market to manage their reserves or intervene in the market to influence exchange rates. Speculators and arbitrageurs aim to make a profit by taking advantage of price differences between currencies.

Which of the Following May Be Participants in the Foreign