Chapter 9.5, Problem 3QS5

Summary Introduction

To Determine:

The another name for a freely convertible currency.

Introduction:

World’s major financial centers are connected through electronic network, the foreign exchange market. Thereof, to the foreign exchange traders, investment firms and currency trading banks acts as a network by these centers. Volume of daily trading on foreign exchange market amounts more than the yearly gross domestic product of many small nations, amounting around $4 trillion. Foreign exchange market is dominated by several currencies and major trading centers.