Question

Which of the following foreign exchange functions are performed by commercial banks ?
1.Transfer purchasing power through telegraphic transfers
2.Provide credit for foreign trade
3.Furnish facilities for hedging foreign exchange risks.
Select the correct answer using the codes given below :

• A. 1 , 2 and 3
• B. 1 and 2
• C. 2 and 3
• D. 1 and 3

Answer 1

The correct option is A 1 , 2 and 3

Transfer purchasing power through telegraphic transfers, provide credit for foreign trade and to furnish facilities for hedging .Foreign exchange risks are some foreign exchange functions which are performed by commercial banks.