Suppose a German tourist buys Canadian dollars with euros in a Canadian airport.What type of market is this tourist participating in?

Question

Quizplus · Accepted Answer

The tourist is participating in a foreign exchange market as they are exchanging one currency (euros) for another (Canadian dollars). A product market involves the buying and selling of goods and services, while a factor market involves the buying and selling of factors of production such as labor and capital. A speculative market involves the buying and selling of assets with the goal of making a profit based on price fluctuations.

Suppose a German Tourist Buys Canadian Dollars with Euros in a Canadian