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Which of the following is a reason for London's dominance in the foreign exchange market? Group...

Which of the following is a reason for London's dominance in the foreign exchange market?

Group of answer choices

a)London's location making it the link between the East Asian and New York markets

b)Great Britain's decision to retain the British pound instead of using the euro

c)London being the preferred headquarters destination for major multinational corporations

d)London's trading centers opening soon after Tokyo's and New York's trading centers closing for the night

e)The preeminence of Financial Times Stock Exchange (FTSE) index as an economic health indicator

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Answer #1

Option (a) is the correct answer. London has a historical affiliation in the East Asian market (due to colonial past) as a result a well developed interlink is present between Pound and currency of East Asian nation. London also has a strategical location, in the atlantic ocean. Which is between New York Market and East Asian market. This connectivity in physical and digital sphere makes London a dominant player in the foreign exchange market.

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