A transaction in the interbank market to be executed on the same day is known as
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The exchange rates quoted by banks to their customer are based on the rates prevalent in the interbank market. The big banks in the market are known as market makers, as they are willing to buy or sell foreign currencies at the rates quoted by them up to any extent. Depending buy or sell foreign currencies at the rates quoted by them up to any extent. Depending upon its resources, a bank may be a market maker in one or few major currencies. When a banker approaches the market maker, it would not reveal its intention to buy or sell the currency. This is done in order to get a fair price from the market maker.
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Answer:
The interbank market is a global network utilized by financial institutions to trade currencies and other currency derivatives directly between themselves. While some interbank trading is done by banks on behalf of large customers, most interbank trading is proprietary, meaning that it takes place on behalf of the banks' own accounts.
Explanation:
Banks use the interbank market to manage their own exchange rate and interest rate risk as well as to take speculative positions based on research.
Where the agreement to buy and sell is agreed upon and executed on the same date, the transaction is known as a cash or ready transaction. It is also known as value today.
Interbank transfer enables the electronic transfer of funds from the account of the remitter in one bank to the account of the beneficiary - either in the same bank or a different bank.