When the foreign exchange market opens in the U.S. each morning, the opening exchange rate quotations will be based on the:

Question

Quizplus · Accepted Answer

The opening exchange rate quotations in the U.S. are based on the prevailing prices in locations where the foreign exchange markets have already been open. This is because the foreign exchange market operates 24 hours a day, and when the market opens in the U.S., it has already been active in other parts of the world. Therefore, the exchange rates are based on the prices that have been set by traders during those active market hours in other regions such as Asia and Europe.

When the Foreign Exchange Market Opens in the U