Question

What is the first level of the Foreign Exchange Market (FEM)?

a.

Small banks, MNCs, hedge funds, and retailers

b.

Inter-bank market comprising commercial bank, investment bankers, central banks, and Non-Banking financial institutions of countries

c.

Retailers and individual traders

d.

Central banks and large financial institutions

Answer: (b).Inter-bank market comprising commercial bank, investment bankers, central banks, and Non-Banking financial institutions of countries Explanation:The first level of the Foreign Exchange Market (FEM) is occupied by the inter-bank market comprising commercial bank, investment bankers, central banks, and Non-Banking financial institutions of countries.

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Q. What is the first level of the Foreign Exchange Market (FEM)?

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