Foreign exchange market by lester cuthbert
the grammatical errors in this passage are intentional.

1.the library of congress business reference services includes a "business & economics research advisor" section. 1his excerpt is from the winter 2006/spring 2007 edition.

2. an exchange-rate system is the set of rules established by a nation to govern the value of its currency relative to 2 other foreign currency. the exchange-rate system evolves from the nation's monetary order, which is the set of laws and rules that establishes the monetary framework in which transactions are conducted. when one currency is traded for 3. another a foreign exchange market is established. the foreign exchange market or fx market is the largest market in the world. the amount of cash traded 4exceeds the world's stock markets. participants in the fx market include large commercial banks, central banks, governments, multinational corporations and other financial markets and institutions.

3 the characteristics of the fx market that make it so unique are: the volume of trading, liquidity of the market, geographical dispersion, the 24 hours trading day (except on the weekends), the number and variety of market traders, and 5the factor that affect the exchange rate. this market 6has a number of marketplaces where currencies are traded at different rates. to avoid exploitation by arbitragers, difference in rates are usually kept at a minimum. banks all over the world are involved in foreign exchange trading, but the main trading centers are located in tokyo, london and new york, allowing the market to remain open 24 hours a day; when asian trading is ending, european trading is starting, and u. s. trading ends the daily session. traders do not have to wait for the market to open. monetary flows and economic changes such as gdp growth, interest rates, inflation, and budget and trade deficits or surpluses, cause fluctuations in the exchange rate. because news affecting foreign exchange is well publicized, insider information is almost nonexistent in the fx market.

4 the world 7has relied on the foreign exchange market. when buying foreign goods and services or investing in other countries, individuals and companies need to purchase the currency of the country where they are transacting business. currencies are traded everyday in the fx market to be used for direct foreign investments, import and export needs of companies and individuals, purchases of foreign instruments, and managing existing positions. 8in addition the fx market is often used as a means to obtain profits from short-term fluctuations of exchange rates. the u. s. dollar, the euro and the japanese yen dominates the foreign exchange market. these hard currencies, representing the world's largest industrialized economies, are always in demand and make up 80% of the fx market trades.

5. for years, foreign exchange rates were relatively stable or fixed, and were dependent upon the gold-exchange standard. the fx market in the past was slow to respond to changing events. under the gold standard, the currencies were valued by their exchange worth in gold. this system was established in 1944 at the bretton woods, new hampshire conference. in planning for the end of world war ii, the conference 9seeked stabilizing constancy in the world economic structure. the u. s. dollar was chosen as the base of the system. the values of all currencies were expressed in relation to the worth of the dollar. the dollar was valued at $35.00 per ounce of gold. problems arose in the 1960's regarding the supply of gold owned 10by the u. s. government, there were concerns about whether the united states owned enough gold to redeem the dollars accumulated in other countries.

6. in 1971, u. s. dollars were no longer exchanged for gold; and in 1973, the floating exchange rate system that governs the fx market today was put into place. now, all currencies are valued by the market forces of supply and demand. since the abandonment of the gold standard, the fx market has become an important part of international economics. with the advent of floating exchange rates, the foreign exchange market has become unregulated. no institution sets rules for trading, and it is not under the supervision of any international organization. when necessary, governments and central banks often work together to restore stability to the fx market. foreign exchange and international trade are closely connected. together, they affect the economic situation of people throughout the world.

choose the best revision, if one is needed.

a) no change

b) by the u. s. government there were concerns

c) by the u. s. government; there were concerns

d) by the u. s. government: there were concerns