Question

Which is traded in a currency exchange market?

Option 1: Foreign money
Option 2: Unprocessed goods
Option 3: Shares in corporations
Option 4: Treasuries

Answer 1

The primary commodity traded in a currency exchange market is foreign money, with the U.S. dollar being the most commonly traded currency. Goods, shares, and treasuries are not traded in this market.

Step-by-step explanation:

In a currency exchange market, the primary commodity traded is foreign money, also known as foreign currency. This market is where people and firms use one currency to purchase another currency, allowing them to engage in international trade and investment. Option 1: Foreign money is the correct answer. Goods, shares, and treasuries have their own respective markets and are not traded on the foreign exchange market. The U.S. dollar is the most commonly traded currency, followed by the euro, the British pound, the Australian dollar, and the Japanese yen. These currencies dominate the market, with the U.S. dollar being on one side of 88.3% of all foreign exchange transactions.