Foreign exchange market is considered 24 hours market because:Select one:a.It is open all through the dayb.All transactions are to be settled within 24 hoursc.Due to geographical dispersal at least one market is active at any point of timed.Minimum 24 hours must elapse before any transaction is settled
Question
Foreign exchange market is considered 24 hours market because:Select one:a.It is open all through the dayb.All transactions are to be settled within 24 hoursc.Due to geographical dispersal at least one market is active at any point of timed.Minimum 24 hours must elapse before any transaction is settled
Solution
The foreign exchange market is considered a 24-hour market primarily due to geographical dispersal. At any given point in time, at least one market around the world is active. This is because the foreign exchange market operates in different time zones of major financial centers like Sydney, Tokyo, London, and New York. When the trading day in one city ends, the forex market begins anew in another. This allows for continuous trading, making it a 24-hour market. So, the correct answer is c. Due to geographical dispersal at least one market is active at any point of time.
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