2. Institutional use of foreign exchange markets Use the following table to determine what type of financial institution engages in each of the given foreign exchange market activities. Commercial Banks International Mutual Funds Brokerage Firms and Securities Firms Insurance Companies Pension Funds Activity in Foreign Exchange Market Exchange a variety of currencies when it's deemed time to reconstruct portfolios. Underwrite forward contracts to financial o O 0 market participants. Engage in foreign security transactions for o O 0 . 0 J their clients or their own accounts. Hedge against exchange rate risk and foreign investments by purchasing and selling a variety of currencies. o O 2. Institutional use of foreign exchange markets Use the following table to determine what type of financial institution engages in each of the given foreign exchange market activities. Commercial Banks International Mutual Funds Brokerage Firms and Securities Firms Insurance Companies Pension Funds Activity in Foreign Exchange Market Exchange a variety of currencies when it's deemed time to reconstruct portfolios. Underwrite forward contracts to financial o O 0 market participants. Engage in foreign security transactions for o O 0 . 0 J their clients or their own accounts. Hedge against exchange rate risk and foreign investments by purchasing and selling a variety of currencies. o O