What action should the Hong Kong Monetary Authority (which is acting as Central Bank for Hong Kong) implement to stop the further changes of its currency value?

Q: Which of the following is NOT a function of the International Monetary Fund? a. Serve as lender of…

A: Lender of last resort means that if an eligible organization any difficulty in raising loan and the…

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

A: In exchange rate system, If one currency appreciates, then other currency depreciates.

Q: Which one of the following is not true regarding a currency board? Currency board holds…

A: Currency board is one of the way to manage the exchange rate and foreign currency and supply of…

Q: What happens over time to the currencies of countries with higherinflation rates than that of the…

A: Currency exchange rate is the rate at which the currency of one country is traded for another…

Q: What concept underlies the two-transaction perspective in accounting for foreign currency…

A: Foreign Exchange Transaction:   It is a transaction involving two or more currencies where one…

Q: Consider the strategies used by your government, in the country your currently reside and current…

A: Answer:- Followings are some of the exchange rate policy managed by government:- 1. Floating…

Q: The Hong Kong, A. Money Authority is responsible for exchange rate stability. B. Monetary D.…

A: The Hong Kong Money Authority is responsible for exchange rate stability. Therefore, the answer is…

Q: xplain why the Cedi continues to depreciate against most major international cur

A: Cedi the currency of Ghana depreciated due to many reason some are domestic and some are…

Q: currencies

A: USD or US$ is considered to be the official currency of the United states of America. as per the…

Q: Should the Federal Reserve take the decision to introduce its own digital currency into circulation,…

A: The Federal Reserve Board of Governors (Fed) released the Money and Payments: The US Dollar in the…

Q: What should be the role of the Finance Ministry to control inward foreign remittances?

A: Inward remittance is referred to as the received funds through an individual in an account from the…

Q: Which of the following statements relating to foreign currency translation and remeasurement is…

A: SOLUTION- ASC 830 PROVIDES THE ACCOUNTING AND REPORTING REQUIREMENT FOR FOREIGN CURRENCY…

Q: what's the required condition for a country's Current Acoount Balance to improve after the…

A: Current account deficit is implies the value of imports of (goods/services/investment incomes) is…

Q: Required: e) True or False: Central Bank of China tend to borrow domestically to buy foreign asset…

A: Net foreign asset position of the nation is referred as the asset's value, where the country used to…

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: Should the Federal Reserve take the decision to introduce its own digital currency into circulation,…

A: Efficient policymaking: Because a digital dollar would be issued and managed entirely by the Fed, it…

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: 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: re the problems Bangladesh can face in currency market due to current condition in

A: There are problem the world over going on due to the which there there are too much fluctuations in…

Q: Should Ghana continue to peg the Cedi against the colonial currency basket or peg to the Chinese…

A: The question is based on the concept of Financial analysis.

Q: The questions about Risks when investing in another country

A: Transaction risk is the possibility that a person to a trade deal will lose cash due to an…

Q: If a country’s par exchange rate is overvalued, what kind of intervention would that country’s…

A: The rate at which one currency can be exchanged for another is referred to as the exchange rate.…

Q: The functions of the World Bank evolved in response to... the increase in protectionism. the…

A: The World Bank is an international organization dedicated to providing financing, advice, and…

Q: One proposal to stabilize the international monetary system involves setting exchange rates at…

A: The question is based on the concept of purchase power parity (PPP) theory in establishment of…

Q: Explain fully why and how government intervenes in the foreign exchange market?

A: The foreign exchange market, also known as the forex market or FX market, is a decentralized global…

Q: Why might a foreign government’s policies be closely monitored by investors in other countries,…

A: Investors, analysts, and policymakers in other nations keep an eye on the policies of governments of…

Q: Singapore, identify the currency in use in the country, show what the foreign currency is now…

A: Currency is the money which is in use in the country. Any countries currency is the money which is…

Q: main reason that U.S. currency cannot be turned in to the government in exchange for a tangible…

A: The answer is stated below:

Q: What modifications may be made to the domestic cost of capital for a foreign venture to account for…

A: Introduction: The question is founded on the idea of international risk management in terms of cost…

Q: An important problem with the gold standard was that a. one country could easily manipulate the…

A: Gold standard: As per the gold standard, the currency/money of a nation has a value directly…

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.