Thank you for visiting According to the text the average foreign exchange trading around the world is per day A 1 trillion B 5 trillion C 10 trillion D. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
Final answer:
The average daily volume traded in the global foreign exchange markets is $5 trillion, making it the largest economic market. This activity is primarily driven by portfolio investment and the constant trading among large foreign exchange dealers. So the correct option is B) $5 trillion.
Explanation:
According to the text, the average foreign exchange trading around the world amounts to $5 trillion per day. This staggering sum is indicative of the sheer magnitude of the foreign exchange markets, which are considered the largest markets in the global economy. Notably, these markets surpass other economic activities such as international tourism, which involves about $1 trillion per year, and global exports, which represent about 23% of global GDP or roughly $18 trillion per year.
The primary contributors to the vastness of the foreign exchange market are not the demands of tourists or firms but rather the activities associated with portfolio investment and the trading conducted by major foreign exchange dealers. Most transactions in this market are characterized by the relatively short-term movements of financial capital between currencies, driven by these dealers who are consistently buying and selling with each other.
Thank you for reading the article According to the text the average foreign exchange trading around the world is per day A 1 trillion B 5 trillion C 10 trillion D. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!
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