The FX markets do not organize direct financing. They are primarily involved in the exchange of currencies, facilitating cross-currency payments, revealing the value of currencies, and arranging the transfer of FX risks. They also have both retail and wholesale components. Direct financing is typically the realm of capital markets, not currency exchange markets.

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FX Markets Do NOT

Question 61

Multiple Choice

FX markets do NOT:

A) facilitate cross-currency payments
B) organise direct financing
C) reveal the value of a currency
D) have retail and wholesale market components
E) arrange the transfer of FX risks.

Correct Answer: