The Foreign Exchange Market Serves Two Main Functions

Multiple Choice

The foreign exchange market serves two main functions.These are

A) collect duties on imported products and convert the currency of one country into the currency of another.
B) insure companies against foreign exchange risk and set interest rates charged to foreign investors.
C) collect duties on imported products and set interest rates charged to foreign investors.
D) convert the currency of one country into the currency of another and provide some insurance against foreign exchange risk.
E) reduce the trade imbalances between countries and convert the currency of one country into another.