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Copyright © 2007 Pearson Addison-Wesley. All rights reserved.
Copyright © 2007 Pearson Addison-Wesley. All rights reserved.
Chapter 6
The Foreign
Exchange Market
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-2
The Foreign Exchange Market
• The Foreign Exchange Market provides:
– the physical and institutional structure
through which the money of one country is
exchanged for that of another country;
– the determination rate of exchange between
currencies, and
– is where foreign exchange transactions are
physically completed.
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-3
The Foreign Exchange Market
• Foreign exchange means the money of a
foreign country; that is, foreign currency
bank balances, banknotes, checks and
drafts.
• A foreign exchange transaction is an
agreement between a buyer and a seller that
a fixed amount of one currency will be
delivered for some other currency at a
specified date.

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Slide-MGT411-Slide03.ppt

  • 1. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. Chapter 6 The Foreign Exchange Market
  • 2. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-2 The Foreign Exchange Market • The Foreign Exchange Market provides: – the physical and institutional structure through which the money of one country is exchanged for that of another country; – the determination rate of exchange between currencies, and – is where foreign exchange transactions are physically completed.
  • 3. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-3 The Foreign Exchange Market • Foreign exchange means the money of a foreign country; that is, foreign currency bank balances, banknotes, checks and drafts. • A foreign exchange transaction is an agreement between a buyer and a seller that a fixed amount of one currency will be delivered for some other currency at a specified date.