FOREX Market serves which primary purpose?

• A. To issue shares
• B. For payment abroad
• C. Trading of commodities
• D. Protects purchasers from risk

Answer: (C)

The main idea behind the FOREX market is to enable the exchange of one currency for another, which is essential for international trade and investment. It provides liquidity so businesses can convert payments and receipts across currencies, helps establish current exchange rates through supply and demand, and offers tools to hedge against currency risk. While you might use the FOREX market to pay abroad or to manage exposure, its primary function is currency conversion, not trading commodities. Commodity markets handle the buying and selling of physical goods or their futures, often priced in different currencies, but that’s separate from the currency exchange process itself.