Which is the global market where currencies are bought and sold?

• A. Exchange Rate
• B. Foreign Exchange Market
• C. Hard Currency
• D. Inflation

Answer: (B)

Currencies are bought and sold in the foreign exchange market, often called Forex. This global, decentralized marketplace operates across banks, institutions, and traders around the world, trading currency pairs like USD/EUR and setting exchange rates through supply and demand. It runs nearly continuously because different financial centers open and close in different time zones. The exchange rate is simply the price of one currency in terms of another, not the place where trading happens. Hard currency is a term for widely trusted currencies, and inflation is the general rise in prices over time.