Question

Which of the following sets correctly lists the buyers and sellers in the foreign exchange market?

Options

• Only foreign exchange brokers and individuals

• Only commercial banks and central banks

• Individuals, firms, importers and exporters, foreign exchange brokers, commercial banks and central banks

• Only importers and exporters

Answer 1

Buyers and sellers in the foreign exchange market include individuals, firms, importers and exporters, foreign exchange brokers, commercial banks, and central banks. The market involves a wide range of participants, not just one category.