Read the passage carefully and answer the questions based on the passage:

The Foreign Exchange Market

Let us assume that a single Indian resident wants to visit London on a vacation (an import of tourist services). She will have to pay in pounds for her stay there. She will need to know where to obtain the pounds and at what price, this price is known as the exchange rate. Foreign Exchange Rate (also called Forex Rate) is the price of one currency in terms of another. It links the currencies of different countries and enables comparison of international costs and prices. For example, if we have to pay Rs 50 for $1 then the exchange rate is Rs 50 per dollar. The market in which national currencies are traded for one another is known as the foreign exchange market. The major participants in the foreign exchange market are commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities. It is important to note that although participants themselves may have their own trading centres, the market itself is world-wide. There is a close and continuous contact between the trading centres and the participants dealing in more than one market.

Which among the following is not a direct participant in the foreign exchange market?

Resident dealers.

The correct answer is Option (1) → Resident dealers.

The passage lists the major participants in the foreign exchange market as: “Commercial banks, foreign exchange brokers and other authorised dealers and monetary authorities.”