The majority of transactions in foreign exchange markets involve ________.

Question

Quizplus · Accepted Answer

The majority of transactions in foreign exchange markets involve exchanging bank deposits denominated in different currencies. This can include transactions between individuals, corporations, financial institutions, and central banks. Transactions on the New York Stock Exchange and buying and selling Treasury securities may involve currency exchange, but they are not the primary activities in foreign exchange markets. Exchanging physical notes is also a possibility, but this is less common and often involves additional risks and costs.

The Majority of Transactions in Foreign Exchange Markets Involve ________