Commercial banks look at foreign-exchange trading as a service extended primarily to important customers, not as a major business activity of its own.

Question

Quizplus · Accepted Answer

Commercial banks do consider foreign-exchange trading as a major business activity of their own. They have dedicated trading desks and employ traders to carry out such transactions. Additionally, foreign-exchange trading generates significant revenue for banks from the bid-ask spread and through trading commissions.

Commercial Banks Look at Foreign-Exchange Trading as a Service Extended