Which is/are a function of foreign exchange market?

Transfer Credit Hedging All of the above

All of the above

The basic and the most obvious function of the foreign exchange market is to transfer the funds or the foreign currencies from one country to another for settling their payments. The FOREX provides short-term credit to the importers in order to facilitate the smooth flow of goods and services from various countries. The third function of a foreign exchange market is to hedge the foreign exchange risks. The parties in the foreign exchange are often afraid of the fluctuations in the exchange rates, which means the price of one currency in terms of another currency. This might result in a gain or loss to the party concerned.