A factor that has had a significant influence on turnover in the Australian FX market during the past decade is:

Question

Quizplus · Accepted Answer

All of these factors have contributed to the turnover in the Australian FX market over the past decade. The growth in foreign trade increases the demand for currency exchange, while offshore borrowing by banks and companies requires them to convert currencies. Speculation, particularly the carry trade, involves borrowing in a low-interest-rate currency to invest in a higher-interest-rate currency, which also increases FX turnover. The GFC had a significant impact on the FX market globally, leading to increased volatility and trading activity.

A Factor That Has Had a Significant Influence on Turnover