The Foreign Exchange Market - Reading

What are the characteristics of "The foreign exchange market"?

• an organized market

• fixed hours

• in which national currencies are exchanged.

• a physical meeting place

Why has the volume of activity escalated dramatically? (choose 2 correct answers)

• in response to the growth in the volume of world trade in goods and services

• the primary communication instruments being the telephone and the computer

• in response to the expansion of international capital flows

• The market has developed rapidly in the past quarter century

____ is the world's largest foreign exchange centre.

Why does the foreign exchange market trade 24 hours a day?

• Time zone (time difference)

• flexibility

• requirements

• the large volume of international financial business

Foreign exchange trading is divided into _____ _____ ______

What are undertaken for an actual exchange of currencies two business days later?

• forward transactions

• delivery or settlement

• spot transactions

• the value date

What does "volatility" mean?

• Giao dịch

• Sự biến động

• Trao đổi

• Chênh lệch

What does "deal with" mean in this sentence: "When banks in London begin trading at 8 a.m. they can deal with banks in Tokyo, Hong Kong, Singapore whose trading day is just ending." ?

• thương lượng

• cân nhắc

• giải quyết

• giao dịch

How many types of participants in the market?

• two

• three

• four

• five

một loại tiền tệ mất giá

• a rising currency

• a decrease in the amount of money

• foreign currency

• a depreciating currency