Question

The international money market is primarily served by?

1) the governments of European countries, which directly intervene in foreign currency markets
2) government agencies such as the International Monetary Fund that promote development of countries
3) several large banks that accept deposits and provide loans in various currencies
4) small banks that convert foreign currency for tourists and business visitors

Answer 1

The international money market is chiefly served by several large banks that operate within the interbank market, providing foreign exchange services and trading in different currencies.

Step-by-step explanation:

The international money market is primarily served by several large banks that accept deposits and provide loans in various currencies. This sector where these banks operate is known as the interbank market. In this market, banks and other financial institutions, sometimes called dealers, offer foreign exchange services to customers and trade among themselves. International trade and investment activities compel governments, firms, and individuals to exchange large quantities of currency, which they typically do through banks. While government agencies like the International Monetary Fund (IMF) play a role in the global financial system, they primarily focus on promoting development and financial stability rather than direct currency exchange services.