Currency Market Mechanics correctly answered 2023

Currency Market Mechanics correctly answered 2023ECTR - correct answer Data base of trade flow between major countries. the currency market operates - correct answer 24 hours a day during the business week Approximately three weeks worth of global currency transactions amounts to? - correct answer World annual GDP Three main entities that trade currencies - correct answer Financial investors, corporations, travelers The largest bucket of entities that trades currencies - correct answer Financial investors buying and selling securities in foreign money. 45% of the volume being driven by banks,. security firms, and institutional investors. Commonly knows as "hot money". Corporations - correct answer conducting global business selling goods and services across borders. Travelers - correct answer Millions of people like you and me on business like you and me on business and leisure trips. Change currency for personal use. Currency conversion calculations are easy when - correct answer One country locks its exchange rate to a major currency, as was done in 1944 at Bretton Woods. This is often done to offer the impression of certainty to business and consumers. Pegged Currency - correct answer A currency based on the fixed exchange rate of another country's currency. PEG function - correct answer table of currencies that are linked, or pegged to other countries' currency value. E.g. the hong kong dollar is pegged to the U.S. dollar at 7.8 Hong Kong dollars, while the Danish crown is pegged to the euro at 7.46 Danish crowns. FX reserves - correct answer One of the key mechanisms that governments use to peg currencies. A huge stack of cash with which to manipulate the supply of and demand for a currency therefore manipulate its value. Interest rates - correct answer In addition to FX reserves, governments also lift interest rates to defend pegs.