Are there money market instruments traded overnight?

Q: If there is inflation how does this affect LIFO reserves? Does it increase or decrease it?

A: LIFO Last-in-first out is a method used to issue material. It is a method of pricing the issues of…

Q: What is foreign exchange FX risk?

A: Foreign exchange risk: It alludes to the misfortunes, due to currency or money changes, that a…

Q: What are Eurodollars?

A: Eurodollars:It refers to the deposit of US dollars in the banks that are located outside the US (and…

Q: Which of the following is most accurate about interest rate swaps?

A: EXPLANATION:- An interest rate swap is a type of rate of interest derivatives in finance. It entails…

Q: How does inflation rate affect exchange rate?

A: Foreign Exchange Rate is the exchange rate at which the currency of one country exchanges with…

Q: What is the difference (Who can invest?) between Money Market, Bond Market, Equity Market, Foreign…

A: The money market is the part of the financial market that invests in short-term debt with low risk…

Q: What are credit derivatives, and how do they operate?

A: Derivative instrument is the financila instrument which derive its value form the underlying asset.

Q: What is the difference (How will the investment earn?) between Money Market, Bond Market, Equity…

A: Financial markets refer broadly to any marketplace where the trading of securities occurs, including…

Q: What is floating exchange rates?

A: Floating exchange rate: It is a scale is where the money cost of a country is set by the forex…

Q: Which of the following is the risk due to a changes in the stock market?      Business risk…

A: The investments that we make in debt, equity and other financial securities are exposed to different…

Q: Discuss the key differences between the operation of a currency forward market and a  futures…

A: Foreign exchange, also known as Forex or FX, is the process of converting one currency into another…

Q: What are the trends/updates in financial instruments traded in emerging markets ?

A: In general, financial markets pertain to any marketplace wherein securities are traded, such as the…

Q: did real estate returns exceed the rate of inflation?

A: Answer: Introduction: An analysis of real estate investment is a process of determining to what…

Q: What does the time value of money (TVM) mean?

A: Time value of money (TVM): The TVM is the thought that, due to its conceivable gaining control, cash…

Q: How can the company use currency options to hedge against exchange rate risk?

A: Those companies which have exposure to foreign markets hedge their risk with currency swap forward…

Q: What is the difference between pegged and floating rate exchanges?

A: A nominal exchange rate that is firmly established by the monetary authority with regard to a…

Q: How do investors deal with inflation when they determine interest rates in the financial markets?

A: Introduction: Inflation is an increase in the overall level of prices of products in the economy…

Q: Why is marking to market important? Examine the significance of market index futures in an economy…

A: Market index futures are financial derivatives that allow investors to trade contracts based on the…

Q: What is the relationship between the time value of money and inflation?

A: Inflation is the rate at which the purchasing capability of money decreases over time. It is…

Q: How can studying the historical returns of stocks, bonds, and inflation increase your understanding…

A: The understanding of the financial market should be based on many procedures like the study of…

Q: Which of the following is the risk due to exchange rates?      Business risk     Financial risk…

A: The investments that we make in debt, equity and other financial securities are exposed to different…

Q: Why is writing deep-in-the-money currency options tantamount to short-term financing?

A: A deep in the money option is an options contract where the strike price of the option is…

Q: What is the difference (term of investment) between Money Market, Bond Market, Equity Market,…

A: Financial markets encompass any marketplace where securities are traded, such as the stock market,…

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: What are the primary risk of trading in the fed funds markets?

A: Fed funds are short-term funds that move between different financial institutions. Generally  the…

Q: Can someone give an example or scenario of the following: 1. Time Value of Money 2. Inflation

A: Part 1:According to the concept of time value of money, the value of money available at the present…

Q: Which of the following is the risk due to inflation?      Business risk     Financial risk…

A: In the dynamic landscape of finance and investments, one risk looms large, silently eroding the…

Q: What advantage does hedging using money market rates have over using interest rate futures?

A: However, there are also some drawbacks to consider:Potential Lower Returns: Interest earned on money…

Q: How does a credit default swap work?

A: The credit default swap is a financial derivative and an agreement between two parties. The seller…

Q: How does the interest rate parity condition Maintain equilibrium in the foreign exchange Market?

A: The question asks how the interest rate parity (IRP) condition helps keep the foreign exchange…

Q: What is the difference bet

A: There are many types of traders in the market and each trader has their own objective in the market…

Q: Define Foreign currency hedge.

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