Economic Awareness - Sectors of Indian Economy
Which of the following is NOT a function of the foreign exchange market?
Which of the following is NOT a function of the foreign exchange market?
medium Q4 of 15
Step-by-Step Solution
Step 1: Understand forex market functions
The forex market facilitates currency conversion, supports international trade, and allows hedging against currency risk.Step 2: Identify unrelated function
Setting domestic interest rates is the role of the central bank and monetary policy, not the forex market.Final Answer:
Setting domestic interest rates → Option AQuick Check:
Setting domestic interest rates = correct ✅
Quick Trick: Forex market ≠ monetary policy interest rate setting.
Common Mistakes:
MISTAKES- Confusing forex market with central bank monetary policy functions.
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