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(1)

Copyright © 2007 Pearson Addison-Wesley. All rights reserved. Copyright © 2007 Pearson Addison-Wesley. All rights reserved.

Chapter 6

The Foreign

(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

(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

Referensi

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