Do you think Balance of Payment and its different components have any role in determining the exchange rate of a country? Explain your point of view.

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: why do exporters and importers use bill of exchange?

A: A bill of exchange is a written order that binds one party to pay another party a predetermined sum…

Q: What is meant by Foreign Exchange Markets?

A:

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: What can be understood from Foreign Exchange Rates?

A: Foreign exchange rate: A foreign exchange rate is the comparative value among two currencies. Merely…

Q: Discuss how changes in the expected exchange rate affects current exchange rate

A: The rate at which one country currencies is exchanges with the currencies of another country, such…

Q: Give full definition of the market for foreign exchange.

A: The cross-border flow of money gives rise to foreign exchange. Foreign exchange refers to foreign…

Q: Why do nations use a crawling peg exchange rate system? What role does speculation play in this…

A: A crawling peg is a rate zone within which a fixed-rate exchange rate currency is permitted to vary.…

Q: Under the fixed exchange rate system, what was the currency against whichall other currency values…

A: Answer: Foreign exchange rate is the currency exchange rate system in which a country’s central bank…

Q: The factors used to convert from one country's currency to another country's currency is called…

A: Strike price is the price at which a call or put option can be exercised. Cost of capital is the…

Q: What is foreign trade balance?

A: Answer: A foreign trade balance is nothing but the net dollar value of commodity exports minus…

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: 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: inson Crusoe and Friday discussed in section 10.3 of the text- describe the situation, and some key…

A: The answer had been mentioned below.

Q: What are the two broad categories of the various currency regimes? What are thesubgroups of those…

A: The two broad categories of currency exchange regimes are as follows: 1. Floating exchange A…

Q: Which of the following factors influences the spread between forward and spot rates? a. which…

A: Spot rate is the current rate of the stock or bond or currency and forward rate is the price that is…

Q: In your view which exchange rate regime is beneficial for the countries and why?

A: Exchange rate regime refers to the method used by a country to manage its currency in respect to…

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: WHAT ARE THE FEATURES AND TYPES OF FOREIGN TRADE?

A: Foreign trade are the trade between two or more countries.there are generally two types of trade…

Q: Required: a. What are the indirect exchange rates for the places.)

A: 1 British Pound = $1.60 So 1 Dollar = 0.625 British Pounds ( 1*1/1.60)   1 Canadian Dollar = $ 0.74…

Q: What is meant by spot rate in case of foreign currency transaction?

A: Spot rate is the rate at which currencies can be exchanged right away. It is the current market…

Q: What is an exchange rate? What is the differencebetween direct and indirect quotations? Whatis a…

A: Introduction: An exchange rate is the value of one currency stated in terms of another currency, or…

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: What does the term functional currency mean? How is the functional currency determined under IFRS…

A: In today's world, a business is operated in multiple countries that uses different currencies.…

Q: Describe the functional currency concept and briefly describe how a foreign entity’s functional…

A: Functional Currency: When a company conducts its business, the functional currency is the primary…

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: From your understanding, discuss the advantages and disadvantages of a fixed change rate regime.…

A: The fixed exchange rate regime is an exchange rate that is determined by the government and it will…

Q: What is the importance of Foreign Exchange Market?

A: Foreign exchange markets commonly known as Forex markets are mainly concerned with purchasing and…

Q: what are implications for analysis of financial statements that result from the accounting for…

A: As per IAS 21 if any has an operation in a foreign country then the financial statements of such an…

Q: What are different types of exchange rate systems. What type of exchange rate system is better in…

A: Exchange rate refers to the rate at which domestic currency can be valued in terms of another…

Q: What are three main stages at which could be considered the effect of exchange rates? Discuss them…

A: There are three main stages in the life of a transaction exposure that could be considered the…