The market in which national currencies are traded for one another is known as the ______________.

Foreign Exchange Market

The correct answer is option (3) : Foreign Exchange Market

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 deal in more than one market.