Exchange Rates How – using which policies and instruments - does Central Bank regulate exchange rates?

Q: Explain the foreign currency swaps and why are they undertaken? Explain the functional currency and…

A: A foreign currency swap, also known as an FX swap, is an agreement between two foreign parties to…

Q: A) What is the geographical location of the foreign exchange market? B) What are the two main types…

A: Foreign exchange market is the market for trading in currencies. It is the largest and the most…

Q: What is London Interbank Offered Rate (LIBOR)?

A: London Interbank Offered Rate (LIBOR): It is the interbank benchmark interest rate offered by an…

Q: What is the function of the international money markets? Briefly describe the reasons for the…

A: In December 1971, the International Monetary Market (IMM) was introduced and officially introduced…

Q: What are forward contracts? How can they beused to manage foreign exchange risk?

A: Risk refers to the uncertainty regarding the implications of any activity.

Q: How does the timing of hedges of (a) foreign currency denominated assets and liabilities, (b)…

A: The three terms are differentiated based on the time when the price or the foreign exchange rate is…

Q: what is Accounting for Foreign Currency Transactions

A: A transaction is said to be a foreign currency transaction when such transaction takes place between…

Q: Define Foreign exchange risk.

A: The term foreign exchange risk is defined as, the risk of an ominous variation in the settlement…

Q: explain exchange rule of islam and its application to modern currency exchange,discounting of trade…

A: What is exchange rule: It is simply the rate at which the currency of two countries could be…

Q: What are pegged exchange rates?

A: Pegged exchange rate: It is otherwise called a fixed exchange rate, which is a kind of conversion…

Q: why a organisation should consider hedging net payables or net receivables with currency options…

A: Answer: Hedging is nothing but an investment risk management strategy that reduces or controls the…

Q: Describe how the prevailing interest rates in a country affect its exchange rates with the currency…

A: The exchange rate is a rate at which the currency of home country is exchanged for currency of…

Q: explain clearly what a foreign exchange market is, it's importance and effects on the business world…

A: Foreign exchange market, organization that exchanging one nation's currency for another. Since the…

Q: Who are the major actors in the exchange rate market and what are their roles?

A: The exchange rate market is also known as the Forex, it is a market for the changing home currency…

Q: Who are the players in the foreign exchange market?

A: The currency market, often known as the foreign exchange market, is a global decentralized or…

Q: Define domestic currency

A: The domestic currency is a currency that is the local currency for every country. Every Trade…

Q: How can fluctuations in exchange rates impact Zara especially in dealing with international…

A: Answer:-  Exchange rate definition:- Exchange rate is that rate at which one country's currency can…

Q: What are some of the transactions or activities that results in the demand of foreign currency

A: In an economy or in a country there are different economic and commercial transactions that lead to…

Q: Describe how the prevailing interest rates in a country affect its exchange rates with the currency…

A: Prevailing interest rates in the country affects the purchasing power of an economy and capital…

Q: what is russia's currency name and exchange rate country's central bank how its organized how…

A: Russian ruble The ruble serves as the Russian Federation's legal tender. The bank's main office is…

Q: chains of events affected the Foreign Exchange Rates long term and short term

A: Factors affecting foreign exchange rates in short term: Interest rates: depreciation or appreciation…

Q: Define Foreign currency hedge.

A: Hedge: The process through which the risk associated with a particular project, can be eliminated is…

Q: Do you think Balance of Payment and its different components have any role in determining the…

A: Balance of Payments: It is the difference in the money flowing in the country & the money…

Q: define \ Repatriation of earnings; political risk Eurodollar; Eurobond; international…

A: 1) Repatriation of Earnings : Repatriation is the bringing of earnings from foreign country to Home…

Q: What is foreign exchange rate?

A: The foreign exchange rate is the relative representation of domestic currency in terms of value of…

Q: What is the value of a unit of domestic currency against foreign currency? A) Parity B) Exchange…

A: The exchange rate is the percentage of foreign currency in domestic currency units, or, in another…

Q: Explain how changes in interest rates are likely to affect exchange rates.

A: General Introduction: Exchange rates are very important factor in determining country's economic…

Q: What is that determines the relationship between spot abd forward foreign exchange rates?

A: The exchange rate between two currencies is the number of units of one currency per unit of the…

Q: Describe the major actors in the foreign exchange market and their roles

A: The foreign exchange market is also known as the Forex, it is a market for the changing home…

Q: What is international trade and how does it operate? How have international capital markets assisted…

A: International trade is a globalization process of facilitates trade by providing goods and rendering…

Q: other

A: IMF is a organization which help regards the economic of world stability and proper monitor…

Q: Direct Intervention How can a central bank use direct intervention to change the value of a…

A: Central bank can make a direct intervention to change the value of a currency. This is achieved by…

Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.