This lecture will provide a summary of the world's major foreign currency exchange markets. It will inform you on what money markets are, where the major exchange markets are as well as why they exist. It will also provide information on the gold standard. The lecture will explain what the gold standard is and present positive and negative aspects of using the gold standard.
Money markets are places where moneys can be bought sold or borrowed. The foreign exchange market is when one currency is traded for another currency. It is the largest market in the world trading for cash value, trading between large banks, central banks, currency speculators, multinational corporations and governments. The foreign exchange market is said to be unique due to its trading value, the liquidity of the market, the large number and variety of traders in the market, how they are wide spread geographically, and because of its long trading hours (Answers.com).
The major markets within the foreign exchange are London, New York, Tokyo, and Singapore. London is the largest, second is New York and Tokyo & Singapore are next with Hong Kong right along with the other Asian countries (Ball, D., McCulloch, W. Jr., Frantz, P. Geringer, & Minor, M., 2006). London became the largest market for several reasons. First, it is a great location. The second reason is its operating during the Asian and American markets. The last reason is the creation of the euro market.
The Euro was created in the 1950's when Russia's oil revenue, in U.S. dollars was, was deposited outside of the United States in fear of it being frozen by U.S. authorities. This made for a large amount of U.S. to be outside of their control (Answers.com). The euro is accepted in Europ ...