JSE FX Trader Practice Questions - JSE FX Trader Course Examination Exam

In the Jamaican foreign exchange market, what is the main distinction between an 'Authorized Dealer' and a 'Cambio'?

Cambios can borrow and lend foreign currency, whereas Authorized Dealers are restricted to buying and selling cash. Authorized Dealers can offer a full range of foreign exchange transactions, including deposit-taking and lending, while Cambios are restricted to buying and selling foreign currency. Authorized Dealers are regulated by the FSC, while Cambios are regulated by the Bank of Jamaica. Cambios can clear foreign currency checks, while Authorized Dealers are prohibited from doing so.

Correct Answer:

Authorized Dealers can offer a full range of foreign exchange transactions, including deposit-taking and lending, while Cambios are restricted to buying and selling foreign currency.

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