The foreign exchange market serves two main functions.These are:
A)collect duties on imported products and convert the currency of one country into the currency of another.
B)insure companies against foreign exchange risk and set interest rates charged to foreign investors.
C)collect duties on imported products and set interest rates charged to foreign investors.
D)convert the currency of one country into the currency of another and provide some insurance against foreign exchange risk.

Question

Quizplus · Accepted Answer

The foreign exchange market primarily serves two functions: converting the currency of one country into the currency of another and providing some insurance against foreign exchange risk. While the other options may involve some elements of foreign exchange markets, they do not accurately reflect the primary functions of these markets.

The Foreign Exchange Market Serves Two Main Functions