Question

Although a foreign exchange transaction can involve any two currencies, most transactions involve pounds on one side.
a. True
b. False

Answer 1

The statement is b. False.
As the statement says, any two currencies can be involved in foreign exchange transactions, but the Pound is not a must, and is only used when a company from a country that uses the Pound as a currency is involved. Much more dominant and broadly used are the Dollar (the USD more specifically)and the Euro for example.