What defines a 'forex market'?

What defines a 'forex market'?

• A. A marketplace for buying and selling stocks
• B. A regulated environment for commodity trading
• C. A global decentralized market for currency trading
• D. A restricted market for government bonds

Answer: (C)

The 'forex market' is defined as a global decentralized marketplace specifically for trading currencies. It plays a crucial role in international trade and finance, where participants can buy and sell currency pairs. This market operates 24 hours a day, allowing transactions to occur in various stages across different global financial centers. The decentralized nature of the forex market means there is no central exchange; instead, it consists of a network of banks, financial institutions, brokers, and individual traders. The correct answer highlights this essence of currency trading rather than focusing on other financial instruments or markets, such as stocks or commodities. The forex market enables participants to engage in activities such as speculation, hedging against currency risk, and conducting foreign exchange transactions necessary for international business operations.

The 'forex market' is defined as a global decentralized marketplace specifically for trading currencies. It plays a crucial role in international trade and finance, where participants can buy and sell currency pairs. This market operates 24 hours a day, allowing transactions to occur in various stages across different global financial centers. The decentralized nature of the forex market means there is no central exchange; instead, it consists of a network of banks, financial institutions, brokers, and individual traders.

The correct answer highlights this essence of currency trading rather than focusing on other financial instruments or markets, such as stocks or commodities. The forex market enables participants to engage in activities such as speculation, hedging against currency risk, and conducting foreign exchange transactions necessary for international business operations.