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What Is the Principle Function of Foreign Exchange Markets

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What is the principle function of foreign exchange markets?


Definitions:

Interest

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the income earned on invested capital.

Bonds Discount

The difference when bonds are sold for less than their face value.

Bonds Premium

The amount by which the price of a bond exceeds its face value, typically because the market interest rate is below the coupon rate of the bond.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its principal amount or face value.

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