The institutions that transact between the foreign exchange (FX)dealers in banks and act as principals in the FX market are called the:
A) foreign-currency dealer houses.
B) currency syndicates.
C) foreign-exchange brokers.
D) inter-bank currency clearinghouses.

Question

Quizplus · Accepted Answer

Foreign-exchange brokers act as intermediaries between the FX dealers in banks and are the principal transactors in the FX market. The other options, such as foreign-currency dealer houses, currency syndicates, and inter-bank currency clearinghouses, either do not exist or do not perform the same function as foreign-exchange brokers.

The Institutions That Transact Between the Foreign Exchange (FX)dealers in Banks