What is the concept of the foreign exchange market?

Economics Aggregate Demand And Supply Questions



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What is the concept of the foreign exchange market?

The foreign exchange market refers to the global marketplace where currencies are bought and sold. It is a decentralized market where participants, such as banks, corporations, and individuals, trade currencies with each other. The foreign exchange market determines the exchange rate between different currencies, which influences international trade and investment. It plays a crucial role in facilitating international transactions and maintaining the stability of the global economy.