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    Explain The Foreign Exchange Market

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    The foreign exchange market allows currencies to be traded and exchange rates to be determined. It is a global decentralized market for trading currencies, consisting of banks, brokers, investment firms, and retail traders. As the largest financial market in the world, the foreign exchange market enables international trade and investment by facilitating currency conversion. Exchange rates are set by currency pairs, where the value of one currency is relative to another. This lack of bias between currencies and fewer regulations compared to other markets makes forex attractive to many investors.

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    Explain The Foreign Exchange Market

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    E R I S
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    The foreign exchange market allows currencies to be traded and exchange rates to be determined. It is a global decentralized market for trading currencies, consisting of banks, brokers, investment firms, and retail traders. As the largest financial market in the world, the foreign exchange market enables international trade and investment by facilitating currency conversion. Exchange rates are set by currency pairs, where the value of one currency is relative to another. This lack of bias between currencies and fewer regulations compared to other markets makes forex attractive to many investors.

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    Explain the foreign exchange market

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    The foreign exchange market allows currencies to be traded and exchange rates to be determined. It is a global decentralized market for trading currencies, consisting of banks, brokers, investment firms, and retail traders. As the largest financial market in the world, the foreign exchange market enables international trade and investment by facilitating currency conversion. Exchange rates are set by currency pairs, where the value of one currency is relative to another. This lack of bias between currencies and fewer regulations compared to other markets makes forex attractive to many investors.

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    113 views2 pages

    Explain The Foreign Exchange Market

    Uploaded by

    E R I S
    The foreign exchange market allows currencies to be traded and exchange rates to be determined. It is a global decentralized market for trading currencies, consisting of banks, brokers, investment firms, and retail traders. As the largest financial market in the world, the foreign exchange market enables international trade and investment by facilitating currency conversion. Exchange rates are set by currency pairs, where the value of one currency is relative to another. This lack of bias between currencies and fewer regulations compared to other markets makes forex attractive to many investors.

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    Download as docx, pdf, or txt
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    Explain the foreign exchange market, the method in which exchange rates are

    determined, and the international monetary system.

    According to Investopedia, World Bank is an international organization dedicated


    to providing financing, advice, and research to developing nations to aid their economic
    advancement. The bank predominantly acts as an organization that attempts to fight
    poverty by offering developmental assistance to middle- and low-income countries.
    They have the goal to help a country to decrease poverty and to increase income
    growth of every country by allowing them to borrow money from them. Those qualified
    government is only charged with low-interest loans, zero-interest credits, and grants, as
    this money will be used for the purpose of supporting the development of individual
    economies. World Bank is also associated with International Monetary Fund (IMF) as
    they were often called the Bretton Woods Institutions because they are an
    intergovernmental pillar that support the world’s economy and financial order.

    There are many countries that have their own currency, like Philippines, we are
    the only country who have Philippine Peso. However, some countries or nations share a
    common currency like some members of the European Union as they have Euro as
    their common currency. It will easily help them whenever they are selling, buying, hiring,
    borrowing, traveling, or investing across national borders. The market in which people
    or firms use one currency to purchase another currency is called the foreign exchange
    market. Foreign exchange market also known as forex, it is a global online network
    where in traders buy and sell currencies. It is made up of banks, forex dealers,
    commercial companies, central banks, investment management firms, hedge
    funds, retail forex dealers, and investors. In addition, according to my research, foreign
    exchange market is the largest financial market in the world as they also enable
    currency conversion for international trade settlements and investments. In the process
    of trading currency, it needs to be by pair so that the value of one of the currencies in
    that pair is relative to the value of the other, therefore there will be no bias or one
    country will be benefited to the other. Moreover, forex have fewer rules compared to
    other market which means they can attract many investors as they don’t have stricter
    standards or regulations. The market is also open 24 hours a day which mean they can
    trade any time of the day. Another is that most investors don’t have to pay the traditional
    fees or commissions that other market have.

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