The document discusses currency and foreign exchange markets. It can be divided into cash and derivative markets, with the cash market further divided into the Euro currency market and foreign exchange market. The Euro currency market enables investors to hold short-term claims on commercial banks, which then invest these deposits into longer term loans. The foreign exchange market is the world's largest market, with a daily turnover of $3.5 trillion, and involves the exchange of major currencies like the US dollar, rupee, yen, and others. The foreign exchange market performs important functions like transferring funds between nations, acting as a clearinghouse through commercial banks, and determining exchange rates to balance supply and demand between currencies.