How Do You Address The Functions Of The Worlds Major Foreign Exchange Markets?
Foreign exchange markets function as marketplaces for the valuation and trade of international currencies. Foreign exchange markets have existed in some form as an adjunct to trade for thousands of years, almost always with reference to a physical asset such as gold, silver, or iron. In other words, ancient traders in early “nation states” would offer 10 silver shekels for 5 gold dinar, for example, and the ratio would change over time depending on the current military/economic status of the currency-issuing states. Learn the historical background of modern foreign exchange markets. Up until World War I, most nations set their own exchange rates with other currencies but backed their own currency with gold reserves. Relatively few people cashed in the currency for gold, as that was cumbersome and did not facilitate trade. Just knowing you could trade your cash in for gold if you wanted to created the implicit value of the currency. There were a number of damaging economic skirmishes pr
