Final answer:
Exchange in marketing is the act of giving and receiving something of value between two parties. In the foreign exchange market, this is handled through financial institutions, with the interbank market playing a significant role in currency trading among banks and firms.
Step-by-step explanation:
The concept of Exchange in marketing refers to the process by which two parties give something of value to each other to satisfy their respective needs. In the context of the foreign exchange market, this does not mean individuals have to personally find someone to exchange currency with. Instead, transactions are facilitated through financial institutions on several levels. One of the key components in this market is the interbank market, where banks and other firms, acting as dealers, trade foreign exchange among themselves and offer these services to customers needing to exchange a substantial amount of currency.