________________ in foreign exchange markets do not carry inventories of foreign currencies,but,instead,match buyers and sellers of foreign currencies and earn commissions when they arrange a transaction.

Question

Quizplus · Accepted Answer

Brokers in foreign exchange markets do not hold inventories of foreign currencies. They facilitate transactions between buyers and sellers of foreign currencies and receive commissions for arranging the deals. This differs from dealers, who buy and sell foreign currencies for their own account and hold inventories of currencies for this purpose. Market makers are a type of dealer who provide liquidity to the market by constantly quoting bid and ask prices for a currency pair. Investors are individuals or entities who invest in financial instruments with the goal of generating profits. While investors may participate in foreign exchange markets, they do not necessarily act as brokers or dealers.

________________ in Foreign Exchange Markets Do Not Carry Inventories of Foreign