One function of the foreign exchange market is to provide some insurance against the risks that arise from changes in exchange rates,commonly referred to as:

Question

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The term commonly used to describe the risk associated with changes in exchange rates is "foreign exchange risk". The foreign exchange market provides a way for individuals and organizations to hedge against this risk by buying and selling currencies at current exchange rates. This can help provide some insurance against the potential negative impact of exchange rate fluctuations on international trade and investments. The other choices are not commonly used terms in relation to the foreign exchange market.

One Function of the Foreign Exchange Market Is to Provide