Question : Which market allows investors to buy and sell foreign currencies?
Option 1: Stock market
Option 2: Commodity market
Option 3: Forex market
Option 4: Bond market
Correct Answer: Forex market
Solution : The correct answer is (c) Forex market.
The Forex market, also known as the foreign exchange market or currency market, is the market where investors can buy and sell foreign currencies. It is a decentralized market where participants, including individuals, banks, corporations, and central banks, trade currencies.The Forex market operates globally, 24 hours a day, allowing investors to engage in currency trading at any time. The main purpose of the Forex market is to facilitate the conversion of one currency into another for various purposes, including international trade, investment, speculation, and hedging.
The Forex market is the largest and most liquid financial market in the world, with high trading volumes and numerous participants. It offers opportunities for investors to profit from fluctuations in exchange rates and diversify their investment portfolios.
Question : Which market provides a platform for trading futures contracts?
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