Choose the correct statements. 1. Foreign currency is always in the form of notes or coins. nothing 2. The foreign exchange market is made up of thousands of people comma including international tourists and foreign exchange brokers. 3. The foreign exchange market is the market in which the currency of one country is exchanged for the currency another. 4. In a growing economy comma the exchange rate is always rising.

Question

Business

Fiona Carrillo

22 December, 01:22

Choose the correct statements. 1. Foreign currency is always in the form of notes or coins. nothing 2. The foreign exchange market is made up of thousands of people comma including international tourists and foreign exchange brokers. 3. The foreign exchange market is the market in which the currency of one country is exchanged for the currency another. 4. In a growing economy comma the exchange rate is always rising.

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Answers (1)

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Raul Contreras · Answer 1

Option 2 and 3 are correct

Explanation:

Foreign exchange refers to the conversion of one currency in exchange for another currency.

Foreign exchange market refers to a market for buying and selling of foreign currency in exchange of home currency. Such form of market has various participants such as forex dealers, brokers, institutions and individuals.

Foreign exchange market has no geographical location, rather it is spread online through network of banks, forex institutions and brokers.

International tourists require the currency of the nation they tour and thus they exchange their own currency in return for it. The process is foreign exchange.