How has the development of credit and debit cards affected firms’ currency holdings?

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

A: Central bank can use indirect intervention to change the value of the currency by making necessary…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: What role do financial markets play in our economy and what is the relationship between financial…

A: Financial institutions are intermediaries that transfer funds, securities, other financial…

Q: Which of the following is NOT a business of commercial banking?aSaving/lendingbForeign currency…

A: Commercial bank is a financial body which is responsible for accepting deposits and providing loan.…

Q: How can a foreign exchange crisis lead to a banking crisis in emerging market countries?

A: Foreign Exchange is trading of one currency for another. Banking is an industry that handles…

Q: What is bank profitability? and market customer size and the concept of profitability? and…

A: Bank Profitability: Like all businesses, banks profit by earning extra money than what they pay in…

Q: How does an investor earn in the foreign exchange market?

A: The foreign exchange market comes into exitance where currencies of different countries can be…

Q: Banks find it necessary to accommodate their clients’ needs to buy or sell FX forward, in many…

A: Foreign markets are the markets that are outside the domestic country and deals with various…

Q: Describe how financial intermediationand financial innovation affect bankingand the economy

A: Financial institutions refer to institutions that offer financial services in the financial market.…

Q: What makes the banking industry a specialized industry?

A: Solution:- Introduction:- Accounting means art of recording, classification, measuring transactions…

Q: Do commonwealth bank (Australia) follow cash or accural accounting?

A: Cash basis of accounting means the transactions are recorded in the firm when the actual payment is…

Q: eign exchange risks and operational risks faced by banks operating in the financial sector, and…

A: Foreign Exchange Exposure refers to the risk associated with ever-changing foreign exchange rates…

Q: How do companies report foreign currency derivatives, such as forward contracts and options, on the…

A: Currency derivatives refers to the financial contracts involving two parties, buyer and seller which…

Q: Why is it vital for banks to diversify worldwide.

A: Diversify is a term used to describe a technique which reduces risk by allocating investments across…

Q: What is the difference (financial instruments traded) between Money Market, Bond Market, Equity…

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

Q: Compare and contrast transaction exposure and economic exposure

A: SOLUTION:- Transaction exposure is the danger a MNC faces when it executes a particular exchange…

Q: WHY IS MONEY MARKET IMPORTANT FOR BUSINESS?

A: The money market is a market of funds in which short-term funds are provided to the entities that…

Q: What impact does the bitcoin trend have on firms and customers (both globally and in the United…

A: A blockchain is a peer-to-peer network that monitors and organised it while also serving as a secure…

Q: What is a Letter of Credit? Please discuss how a Letter of Credit work. Why is Letter of Credit…

A: What is a Letter of Credit A letter of credit, sometimes known as a "credit letter," is a guarantee…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Introduction: Financial markets are markets where the exchange of financial securities takes place.…

Q: List the categories of central banks function? Elucidate the interbank markets?

A: Central bank of any economy (or country) is the apex financial institution that governs and…

Q: What is currency manipulation?

A: Introduction: Currency manipulation is considering as when countries purposely impact the exchange…

Q: How does extence of rivalry among competitors in the banking sector affect the investment industry…

A: The global financial crisis rekindled policymakers' and academics' interest in bank competition and…

Q: Are merchant banks relevant to the Ugandan economy?

A: Meaning of Merchant Bank :- A merchant bank can be classified as the type of financial intermediary…

Q: How does the deposit insurance help the depositors? What are the pitfalls of the scheme? Can it help…

A: Deposit Insurance is a type of insurance in which the deposit holders are protected from losses if a…

Q: Explain the following: Liquidity management currency issue lender of last resort financial…

A: The above terms are associated with commercial banks and the Central Bank of the country. The terms…

Q: How do you segment the International Financial Markets?

A: Main segments of international financial segments are 1. Buying segment 2. Selling segment 3.…

Q: Explain about the hedging against the foreign currency risk.

A: Foreign exchange refers to the trading of currency of one country with the currency of another…

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: Question: Is ASIA PACIFIC engaged in banking? Give your reasons.

A: Banking refers to the business activity of safeguarding as well as accepting the money owned through…

Q: Explain the Currency crisis, Banking Crisis and Foreign Debt Crisis

A: In the world of finance, we often see or hear about one crisis or the other. The 2008 financial was…

Q: What is the importance of International Financial market ? How does it facilitate business…

A: The International Financial Market is a marketplace for individuals to trade their financial riches…