FOREX MARKET

FORWARD

A contract to exchange currency at a future date at a fixed rate is called

COMMERCIAL BANK

Which participants are the largest traders in Forex?

2 business days (T+2)

A spot transaction in Forex is settled within

Currency conversion

A company importing goods from Europe must pay in EUR but holds USD. Which Forex function applies?

True

International trade and investment would be difficult without Forex

Central Banks

Who intervenes in Forex markets to stabilize currency?

Tax Collection

Which of the following is NOT a function of the Forex market?

False

The Forex market is centralized in one global headquarters

Hedging and speculation

Futures and options in Forex are used mainly for

Currency Conversion

A Philippine exporter receives USD but needs PHP to pay workers. This is an example of

Forex Market

The largest financial market in the world is

7 trillion

The daily turnover of Forex is approximately

Managed Float

The exchange rate system in which government actively intervenes is

Exploiting price differences

Arbitrage in Forex refers to

Floating

Which exchange rate system is determined by supply and demand?

Swap

Which Forex transaction involves both buying and selling currencies simultaneously?

Currencies

The foreign exchange market is primarily concerned with

True

Speculators use Forex to profit from exchange rate changes

False

Floating exchange rate system depends on government setting the value

False

Spot transactions are settled immediately