Unit 14: The foreign exchange market

New words
Foreign exchange market: thị trường ngoại hối

Currency: tiền tệ

Over-the-counter market: thị trường không chính thức(ngoài danh mục)

Transaction (n): giao dịch

Spot transaction: giao dịch tức thì

Forward transaction: giao dịch có kì hạn

Market maker (n): người tạo dựng thị trường

Dealer (n): người bán buôn

Delivery date (n): ngày giao nhận

Border (n): đường biên giới

Broker (n): người môi giới

Bid rate = buying rate: giá hỏi mua

Offer rate = selling rate: giá chào bán

Commission (n): tiền hoa hồng

Communication instrument: công cụ giao tiếp

Participant (n): người tham gia participate(v)

Short question
1. What is the foreign exchange market?
The foreign exchange market is the market in which national currencies are
exchanged.
2. What are two types of transaction in the foreign exchange market?
Two types of transactions are spot transactions and forward transactions.

3. What is a spot transaction?

A spot transaction is an actual exchange of currencies 2 business days later.

4. What is a forward transaction?

A forward transaction involves a delivery date further into future, a year or
more

Make up the sentences

1. Foreign exchange market/ be/ market/ national/ currency/ be/
exchange.
The foreign exchange market is the market in which national currencies are
exchanged.

2. Two/ type/ transaction/ be/ spot transaction/ forward transaction.

Two types of transactions are spot transactions and forward transactions.

3. Spot transaction/ be/ actual exchange/ currency/ 2 busiones/ day/

late.
A spot transaction is an actual exchange of currencies 2 business days later.

Long question
1. How does the foreign exchange market operate?/ What are the
main features of the foreign exchange market?
The foreign exchange market is an over-the-counter market. It is not an
organized market with fixed hours and a physical meeting place. The trading is
made through-out the day. The main communication instruments are telephones
and computers.
2. What are different groups of participants in the foreign exchange
market?
They are
+ market makers (Central Banks)
+ customers (multinational companies, import-export companies,
individuals)
+ dealers (banks)
+ brokers
Find the definitions of these terms
Grant, infrastructure, tariff, capitalism, depreciation
Grant: An amount of money given, usually by a government or nonprofit
organization, to fund certain projects.

Infrastructure: The basic systems and services that are necessary for a country
or an organization to run smoothly, for example buildings, transport and water
and power supplies.

Tariff: A tax that is paid on goods coming into or going out of a country.

Capitalism: An economic system in which a country’s businesses and industry

are controlled and run for profit by private owners rather than by the
government.

Depreciation: A decrease in value over a period of time.