International currency markets includeSelect one:a.Banksb.Corporationsc.Central banksd.All the above
Question
International currency markets include
Select one:
- a. Banks
- b. Corporations
- c. Central banks
- d. All the above
Solution
Break Down the Problem
- Identify the components of international currency markets.
- Evaluate the roles of banks, corporations, and central banks in these markets.
- Determine if any of these entities should be excluded from the answer.
Relevant Concepts
- International currency markets are platforms where currencies are traded globally.
- Major participants typically include banks, corporations, and central banks, among others.
Analysis and Detail
- Banks: They facilitate foreign exchange transactions and provide liquidity in the currency markets. They play a crucial role in setting exchange rates.
- Corporations: Corporations participate in currency markets to hedge against currency risk and for international trade.
- Central Banks: Central banks can intervene in currency markets to stabilize or influence national currency values.
Verify and Summarize
All listed entities play significant roles in the functioning of international currency markets. Thus, the correct option cannot exclude any of these participants.
Final Answer
d. All the above.
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