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When the buying and selling of currencies by market participants determines the value of one currency compared to other currencies, this is known as

What is the term for the process where market participants determine the value of currencies?
a. Foreign exchange
b. Currency evaluation
c. Market speculation
d. Currency manipulation

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Final answer:

The process by which market participants determine the value of currencies through buying and selling is known as foreign exchange. This occurs in the foreign exchange market driven by supply and demand, and influenced by speculation and international investment flows. option a is answer

Step-by-step explanation:

When the buying and selling of currencies by market participants determines the value of one currency compared to other currencies, this process is known as foreign exchange. In the foreign exchange market, demand and supply dictate the exchange rates.

Several factors contribute to these fluctuations, such as export firms converting foreign currency to their home currency, tourists exchanging money while traveling, and investors seeking to make financial investments either domestically or internationally

To answer the original question, the term for the process where market participants determine the value of currencies is a. Foreign exchange. . option a is answer

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