Which of the following correctly describes a foreign exchange market?
A) A place where foreign goods are bought and sold in any country
B) A market in which foreign tourists can buy domestic goods
C) A global market in which people exchange one currency for another
D) A place where contracts to deliver agricultural products across countries are exchanged
E) A market where the central banks of different countries exchange government bonds

Question

Quizplus · Accepted Answer

A foreign exchange market is a global market where people exchange one currency for another. This happens through currency trading, which allows individuals, institutions, and governments to buy and sell currencies with the aim of generating a profit or managing risk. The foreign exchange market is the largest financial market in the world, with an average daily turnover of over $5 trillion.

Which of the Following Correctly Describes a Foreign Exchange Market