Understanding the Foreign Exchange Market

What is the primary function of the foreign exchange market?

• To regulate interest rates for global economies.

• To manage government debt and fiscal policies.

• To provide a platform for stock trading.

• To facilitate currency conversion for international trade and investment.

Which currency is considered the world's primary reserve currency?

• US dollar

• Euro

• British Pound

• Japanese Yen

What does the term 'forex' stand for?

• foreign investment

• foreign currency exchange

• forex trading

• foreign exchange

What are currency pairs in the foreign exchange market?

• Currency pairs are the quotation of two different currencies, where one currency is exchanged for another.

• Currency pairs are used exclusively for cryptocurrency trading.

• Currency pairs are the same as stocks in the stock market.

• Currency pairs refer to the value of a single currency only.

What is the role of a forex broker?

• To provide investment advice on stocks

• The role of a forex broker is to facilitate trading in the foreign exchange market.

• To offer loans for trading purposes

• To manage clients' bank accounts