Final answer:
The interbank market is the type of currency market where dealers are counterparties to currency exchange transactions. Banks and a few other firms act as dealers and facilitate this trading in the interbank market.
Step-by-step explanation:
In the currency market, the interbank market is the type of market where dealers are the counterparties to currency exchange transactions. Most people and firms exchanging a substantial quantity of currency go to a bank, and these banks, along with a few other firms, act as dealers and facilitate the trading of foreign exchange in the interbank market.