Mam please answer soon
Question 3) How are foreign exchange transactions between international banks settled?
Question 4) What is triangular arbitrage?
Question 5) What does Trading foreign exchange mean ?
Question 6) Why should people trade Foreign exchange?
Dear Student,
Question 3 ) There is a interbank market which is a network of correspondent banking relations, with large commercial banks maintaining demand deposit accounts with one another , called correspondent bank accounts .Through these correspondent bank accounts , foreign exchange transactions are settled between international banks .
Question 4 ) Triangular arbitrage is the process of trading out of the US dollar into second currency , then trading it for third currency , which is traded for US dollars.
Question 5 )Trading in those transactions which involves currencies in foreign exchange market is called trading foreign exchange .
Question 6) People trade foreign exchange because of :
(i) accessibility
(ii)liquidity
(iii) global exposure
Hope this information will clear your doubts .
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
Question 3 ) There is a interbank market which is a network of correspondent banking relations, with large commercial banks maintaining demand deposit accounts with one another , called correspondent bank accounts .Through these correspondent bank accounts , foreign exchange transactions are settled between international banks .
Question 4 ) Triangular arbitrage is the process of trading out of the US dollar into second currency , then trading it for third currency , which is traded for US dollars.
Question 5 )Trading in those transactions which involves currencies in foreign exchange market is called trading foreign exchange .
Question 6) People trade foreign exchange because of :
(i) accessibility
(ii)liquidity
(iii) global exposure
Hope this information will clear your doubts .
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards