The gold standard is a type of floating exchange rate system. a type of managed flexible exchange rate system. a type of fixed exchange rate system. a purely floating exchange rate system.

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: Explain pegged exchange rates

A: Exchange rate is the value of one country’s currency in exchange of other country’s currency.

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: There are three main types of methods to forecast exchange rates: technical forecasting fundamental…

A: Forecasting refers to a technique that is useful for analyzing the historical data for taking the…

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: What is fixed exchange rate system?

A: Fixed exchange rate system It is a standard forced by an administration or national bank that…

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

A: A) Interest rate - Interest rate is the rate at which return on an investment is to be earned or the…

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: What is the basic difference between floating and fixed exchange rates?

A: Answer: Fixed exchange rate is where, when revaluation or devaluation happens, the exchange rate…

Q: Exchange rates fluctuate under both the fixed exchange rate and floatingexchange rate systems. What,…

A: Fixed exchange rate: Fixed exchange rate is formally set by the administration or monetary authority…

Q: Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of…

A: Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of…

Q: Define spot rate (foreign exchange)

A: Spot rate (foreign exchange):  Spot rate is the present exchange rate at which a pair of currency…

Q: Assume that interest rate parity holds. When a currency trades at a forward premium,what does that…

A: When trading of currency is at forward premium, A situation where the currency’s forward price is…

Q: Define foreign currency hedges.

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

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: once the capital markets are integrated it is difficult for a country to maintain a fixed exchange…

A: Market is a place to exchange the products, in the financial market (FM), financial securities are…

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: An exchange rate is simply the rate at which one currency is converted into another True False

A: Currency is referred as the medium of exchange for which goods and services are exchanged. It is the…

Q: Define each of the following terms: b. Exchange rate; fixed exchange rate system; floating exchange…

A: Introduction: The terms exchange rate, fixed exchange rate system, floating exchange rate are…

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: Critically evaluate the argument that fixed exchange rate regime is better than flexible exchange…

A: Fixed exchange regime refers to that regime in which exchange rate in a country remains fixed…

Q: During much of the 1800s, developed nations employed what came to be known as the ______________…

A: The system which helps in the determination of exchange rates in a country or in other countries is…

Q: What is a convertible currency?

A: Introduction: A convertible currency that might be swapped for a foreign currency. Currency…

Q: Critically evaluate the role of exchange rate systems in influencing FDI and trade levels.

A: Foreign direct investment:  One of the primary methods of contemporary capital internationalization,…

Q: Describe the widely used currency derivatives.

A: Currency Derivatives: These are the contracts that generate their value from their underlying…

Q: Explain why the following statement is true or false: “The smaller and less liquid markets and…

A: Currency market or foreign exchange market is defined as the global decentralized or OTC market…

Q: Why the single currency eliminates exchange rate fluctuation and why is better for the countries to…

A: Single Currency refers to the currency used by more than one country. In other words, when more than…

Q: Define each of the following terms: d. Exchange rate risk; convertible currency; pegged exchange…

A: Introduction: The terms exchange rate, fixed exchange rate system, floating exchange rate are…

Q: Define a floating exchange rate system.

A: A floating exchange rate is a system in which a country's exchange price is set mostly on basis of…

Q: Define convertible currency

A: A convertible currency is the one that is readily available to purchase other currencies and is not…

Q: What are two advantages and two disadvantages of a fixed exchange rate?

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Regulations Of Foreign Exchange Market