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What are three functions of foreign exchange market?

In: Economics, Importing and Exporting, Foreign Exchange (Forex) [Edit categories]

Answer:

1.Transfer function:Transferring purchasing power between countries.
2.Credit function: providing credit channels for foreign countries
3.Hedging function: Minimizing risk loss

First answer by Elzbelz1279. Last edit by Shekharsarkar. Contributor trust: 110 [recommend contributor ]. Question popularity: 13 [recommend question].

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