INTERVIEW QUESTIONS FOR FINANCE AND ACCOUNTSJ

 Q.1 What is Foreign Exchange Market? Foreign Exchange Market is a place where foreign currencies of different countries are bought and sold. It is not a physical market, but a network of computers connected to each other. It is called OTP or Over the counter market. Euro and USD are the most commonly traded currencies in the world. Q.2 Which is the most traded currency pairs? Since every trade involves selling one currency for another. Therefore the most traded ‘currency pairs’ are USD/GBP USD/EUR  USD/JPY. Q.3 What do you understand by a cable in Forex? USD/GBP rate is also referred as ‘Cable’ that is a client would say “Give me a price in 10 Million Cable”. Q.4 What is the average daily volumes in foreign exchange The average daily volumes in the foreign exchange market are USD 5 Trillion. Q.5 How does trade occur in forex market? Trades occurs over the phone or through electronic trading platforms (software).The most well known are FX trades are, Thomson Reuters Matching, ...

 Question 1. Give A Full Definition Of The Market For Foreign Exchange ? Answer :Broadly defined, the foreign exchange (FX) market encompasses the conversion of purchasing power from one currency into another, bank deposits of foreign currency, the extension of credit denominated in a foreign currency, foreign trade financing, and trading in foreign currency options and futures contracts. Question 2. What Is The Difference Between The Retail Or Client Market And The Wholesale Or Interbank Market For Foreign Exchange? Answer :The market for foreign exchange can be viewed as a two-tier market. One tier is the wholesale or interbank market and the other tier is the retail or client market. International banks provide the core of the FX market. They stand willing to buy or sell foreign currency for their own account. These international banks serve their retail clients, corporations or individuals, in conducting foreign commerce or making international investment in financial assets th...