The foreign exchange system contains the prices of currencies of other countries
The foreign exchange system contains the prices of currencies of other countries. These prices fluctuate based on demand and supply. Individuals buy and sell currency as they would any other commodity. Instead of a product like in other markets of world, the product here is currency, thus the feel of an exchange when it is actually a purchase.
With this in mind, create a 2page response to the following:
Compare and contrast the Foreign Exchange Market and an international market of your choice.
Determine an advantage and disadvantage for each.
On the written assignment for Module 3, remember that you should be comparing the foreign exchange market, which includes the buying and selling of ALL currencies, with an international market, like say Spain, where you might be selling particular goods/services, much different then buying and selling currencies
………………….Answer preview…………………………
Foreign exchange market is a global decentralized market for the trading of currencies and whose main participants are the larger international banks. It works through the financial institutions and it determines the relative values of different currencies. Trades between foreign exchange dealers are mostly large, involving hundreds of millions of dollars and due to the sovereignty issues when involving two currencies……………………..
APA
675 words
Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below
