What Is the Principal Function of the Foreign Exchange Market

question 38

Multiple Choice

What is the principal function of the foreign exchange market?

• A)To transfer purchasing power from one nation and currency to another
• B)To maintain fixed exchange rates that remain unaffected by market forces
• C)To facilitate foreign direct investment
• D)To convert foreign currency into gold

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Definitions:

Adolescence

A developmental phase following childhood and before adulthood, characterized by physical, psychological, and social changes.

Parental Influence

The effect that parents have on their children's development, behavior, and decisions, through their actions, teachings, and support.

Psychosocial Task

A challenge or duty that is related to an individual's psychological development and social interactions.

Intimacy

Intimacy refers to a close, familiar, and usually affectionate or loving personal relationship with another person or group.