Question

explain functions of foreign exchange market?​

Answer 1

Answer:

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Functions of foreign exchange market:

1.Transfer function:This function is used for transferring of funds from one country to another country.

2.credit function:This function is helpful in providing credit for foreign trades

e.g:bills of exchange rate are used for international payments.

3.Hedging function:It is an activity which reduces the risk of loss of foreign exchange and is generally adopted by importers and exporters.

Explanation:

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Answer 2

Answer:

Functions of foreign exchange market:

1.Transfer function:This function is used for transferring of funds from one country to another country.

2.credit function:This function is helpful in providing credit for foreign trades

e.g:bills of exchange rate are used for international payments.

3.Hedging function:It is an activity which reduces the risk of loss of foreign exchange and is generally adopted by importers and exporters.