On foreign exchange market platforms exchange rates are quoted using ISO codes. As a rule the euro and the Japanese yen, relative to the dollar, are quoted as EUR/USD and USD/JPY. The current exchange rates are EUR/USD 1.2422 and USD/JPY 108.67. This is equal to:   Question 12 options:   €1.2422/$ and ¥108.67/$   $1.2422/€ and ¥108.67/$   $1.2422/€ and $108.67/¥   €1.2422/$ and $108.67/¥

Q: Country Contract $/Foreign Currency Canada – Dollar Spot 0.8437 30-day 0.8417 90-day 0.8395 Japan –…

A: The cross rate is the rate between two currencies whose values have been given in terms of a third…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Depreciation of a currency means that the value of the currency with respect to the other decreases,…

Q: critically discuss main causes of exchange rate volatility in the foreign exchange markets. Please…

A: Exchange rate volatility- It refers to the tendency of a currency of one country  to appreciate or…

Q: If the exchange rate for Canadian and U.S. dollars is 0.92777 to 1, this implies that 13 Canadian…

A: Value of 1 Canadian dollar in US dollar = 1/0.92777 = 1.07785334727

Q: Currently, $1 = SAR 25, SAR 1 = 0.025 Yen. What is the exchange rate between the U.S. dollar and the…

A: The exchange rate of US Dollar (USD) and Japanese Yen (JPY) can be calculated with the help of cross…

Q: An Australian firm asks the bank for a SFr/AS quote because it received SFr and wants to change it…

A: Calculate the bid rate of US$/A$ by dividing 1 by the ask rate of A$/US$ which is 1.5250. Thus, the…

Q: Assume that Canadian (domestic) interest rate is 6%. EU (foreign) interest rate is 3%. and the…

A: Concept. Interest rate parity theory defines relationship between interest rates and exchange rates…

Q: A foreign operation has the following local inflation rates: Year 1: 10% Year 2: 20% Year 3: 30%…

A: Introduction: Foreign exchange market is described as over the counter market for currencies…

Q: Complete the cross rates table (matrix) below by using only the exchange rates given in the matrix…

A: CROSS RATE = 1/ EXCHANGE RATE FOR EXAMPLE, 1 CNH = 0.1545 USD THEREFORE,  1 USD = 1/0.1545 CNH…

Q: Table 2 gives the exchange rate quotations for the U.S. dollar and the British pound. Table 2.…

A: a) U.S Dollar equivalent means, amount of dollars for each pound Currency per dollar means, amount…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: The foreign exchange rates: The foreign exchange rates refer to the trading of one currency for…

Q: In the spot market $1 = 5 Euro, 1 Euro = 25 Canadian Dollar, and 1 Canadian Dollar = 0.75 Japanese…

A: $1 = 5 Euro 1 Euro = 25 Canadian dollar 1 Canadian dollar = 0.75 Japanese Yen

Q: Use the following table to answer questions: Country (currency) Canada (dollar) Denmark (krone) Euro…

A: Exchange Rates on Jun2 30, 2010 1 USD($) = 7.782 Sweden krona (SKr) Exchange Rates on Jun2 30, 2009…

Q: Spot Exchange Rate between Lao Kip and Euro:  LAK/€:11,360.9812-11,362.7857 Interest Rates:…

A: Interest rate parity- Forward rateBid = Spot rateBid (1+ interest ratebid rate of quoting currency)…

Q: When the direct rate in the United States for the euro is USD 0.9568 per EUR, the reciprocal rate…

A:

Q: A Taiwanese company is to export electronic equipment into Europe, in particular Germany and Sweden,…

A: A cross rate is referred as a foreign currency exchange transaction between two currencies where…

Q: Given the following exchange rates in the market, what should be the cross exchange rate between…

A: Cross exchange rate is the rate which is determined between two currencies. Both the currencies are…

Q: In February 2022 the €/$ (euro/dollar) exchange rate was 0.88€/$. In France, a country that uses…

A: 1 $ = 0.88 € 25$ = 25*0.88 = 22€   Same goods can be bought using the given e

Q: The exchange rates for USD against CNY (Chinese Yuan) and OMR are as follows:…

A: The cross rate refers to the exchange rate between two currencies, each of which has an exchange…

Q: Spot Exchange Rate between Jamaican Dollar and Euro: JMD/€: 179.9298-182.0387 Interest Rates:…

A: According to interest parity concept future exchange rate should match with interest rates.

Q: Assume that USD is the home currency and exchange rates displayed in the market as INR 74.27-80/USD.…

A: An indirect quote in foreign exchange markets represents the amount of foreign currency which is…

Q: You are provided with the following exchange rate quotations: American Terms Bank quotations British…

A: Bid on (€/£) = 1/ Ask ($/€) Ask ($/€) = $1.4742 Bid ($/£) = $1.9712

Q: The exchange rates for OMR and CLP(chilian peso) against USD are given below OMR0.3945/USD CLP…

A: Cross rates can be calculated by equating two different currencies with each other.

Q: Currently, $1 = SAR 25, SAR 1 = 0.025 Yen. What is the exchange rate between the U.S. dollar and the…

A: exchange rate between the U.S. dollar and the Japanese Yen = SAR / $ * Yen / SAR

Q: Under a flexible exchange rate system, an increase in the value of the U.S. dollarin terms of other…

A: Exchange rate refers to that rate at which two currencies can be exchanged with one another. It can…

Q: The euro is quoted as EUR：USD = 1.1420-1.1425，and the Canadian dollar is quoted as USD$：CAD =…

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

Q: Question 2 The following wholesale exchange rates are taken from Oanda.com on September 21, 2020.…

A: Since more than three sub-parts are asked at a time. Here answer for first three sub-parts is…

Q: The SGD/NOK exchange rate is quoted as 2.9584. Does this exchange rate express the number of…

A: An exchange rate is the value of a nation's currency in terms of another country's currency.

Q: Current Spot Rates. What are the current spot exchange rates lor the following cross rates? a.…

A: Current spot exchange rate is the rate at which the price or currency in one country exchanges…

Q: The exchange rate for the US and Canada is currently quoted at 0.993 - 0.995 $/Cdn $. The exchange…

A: Triangular Arbitrage occurs when there is a discrepancy in three foreign currencies. The…

Q: he following spot FX rates were reported:   Japanese Yen British Pound Australian Dollar US Dollar…

A: Japanese Yen British Pound Australian Dollar US Dollar 0.010267 1.616500 0.957900 The…

Q: If the U.S.DOLLAR is determined to be the functional currency, which of the following is usually…

A: Exchange rate depicts the rate at which one currency is paid in order to pay the exact amount of…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart. For example, in column 1 it says the…

A: Here discuss about the details of the currency exchange rate of different national and its…

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: When exchange rates are quoted as the number of U.S. dollars per unit of foreign currency, it is…

A: Under American term, the number of US Dollar represents the quotation of exchange rate of foreign…

Q: In the spot market $1 = 5 Euro, 1 Euro = 25 Canadian Dollar, and 1 Canadian Dollar = 0.75 Japanese…

A: The exchange rate between the U.S. dollar and the Japanese yen = Euro / $ * Canadian Dollar/ Euro *…

Q: Based on the table below, which currencies appreciated between January and March? Name of Currency…

A: The appreciation of currency is linked to the strengthening of the local currency. In the given…

Q: Determine the Direct and Indirect exchange rates of any two currencies on the two dates and show the…

A: Exchange rate quotation can be direct or indirect. When one unit of foreign currency is expressed in…

Q: On January 1, 2021, Euro and USD exchange rate was 1.23 USD/EUR. Today, the Euro exchange rate is…

A: A rate through which individuals or companies convert their domestic currency with the other…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.