Difference between revisions of "Foreign Exchange"
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== Definition == | == Definition == | ||
| − | '''Foreign Exchange'''. (FX/Forex) It is the exchange, or conversion, of one currency into another currency. | + | '''Foreign Exchange'''. (FX/Forex) It is the exchange, or conversion, of one currency into another currency. Foreign exchange also refers to the global trading markets by which currencies are virtually exchanged around the clock, with the largest centers being based in London, New York, Tokyo, and Singapore. The term foreign exchange is frequently abbreviated to ''forex'' as well as ''FX''. |
| − | + | In the context of the [[Financial Competence Framework]], ''Foreign Exchange'' is a topic in the [[:Category:Money And Transactions | Money And Transactions]] subject matter domain.<ref>European Union/OECD (2022), Financial competence framework for adults in the European Union</ref> | |
| − | + | == Competences == | |
| + | Mastering the role of Foreign Exchange in financial literacy context requires the following competences: | ||
| + | {| class="wikitable sortable" | ||
| + | |- | ||
| + | ! Code !! Competency Description !! Competency Type | ||
| + | |- | ||
| + | | 12 || Knows how to apply exchange rates to convert currencies || Knowledge | ||
| + | |- | ||
| + | | 13 || Knows that transaction fees, commission and exchange rates vary across time and providers || Knowledge | ||
| + | |- | ||
| + | | 14 || Understands the impact of varying exchange rates on remittances, foreign travel or foreign purchases || Knowledge | ||
| + | |- | ||
| + | | 15 || Aware of the existence of currency converter tools || Knowledge | ||
| + | |- | ||
| + | | 16 || Can convert prices expressed in different currencies || Skill | ||
| + | |- | ||
| + | | 17 || Takes into account fees and the exchange rate when deciding how to remit or exchange money || Skill | ||
| + | |- | ||
| + | | 18 || Confident to handle transactions in different currencies || Attitude | ||
| + | |- | ||
| + | | 19 || Compares exchange rates from different providers in search for the best quotation || Attitude | ||
| + | |} | ||
| + | |||
| + | == References == | ||
| + | <references/> | ||
| + | |||
| + | [[Category:Money And Transactions | Money And Transactions]] | ||
[[Category:Products and Markets]] | [[Category:Products and Markets]] | ||
Latest revision as of 16:42, 1 April 2022
Definition
Foreign Exchange. (FX/Forex) It is the exchange, or conversion, of one currency into another currency. Foreign exchange also refers to the global trading markets by which currencies are virtually exchanged around the clock, with the largest centers being based in London, New York, Tokyo, and Singapore. The term foreign exchange is frequently abbreviated to forex as well as FX.
In the context of the Financial Competence Framework, Foreign Exchange is a topic in the Money And Transactions subject matter domain.[1]
Competences
Mastering the role of Foreign Exchange in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 12 | Knows how to apply exchange rates to convert currencies | Knowledge |
| 13 | Knows that transaction fees, commission and exchange rates vary across time and providers | Knowledge |
| 14 | Understands the impact of varying exchange rates on remittances, foreign travel or foreign purchases | Knowledge |
| 15 | Aware of the existence of currency converter tools | Knowledge |
| 16 | Can convert prices expressed in different currencies | Skill |
| 17 | Takes into account fees and the exchange rate when deciding how to remit or exchange money | Skill |
| 18 | Confident to handle transactions in different currencies | Attitude |
| 19 | Compares exchange rates from different providers in search for the best quotation | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
