what is currency issuance in monetary policy? give examples

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: Define the term exchange rate?

A: There are two types of exchange rates: floating and fixed. The floating exchange rate is determined…

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: Define currency appreciation

A: Answer: The meaning of currency appreciation is nothing but an rise of one currency’s value…

Q: How can the company use currency options to hedge against exchange rate risk?

A: Those companies which have exposure to foreign markets hedge their risk with currency swap forward…

Q: Explain the asset channel of monetary policy and analyze its usefulness in the country

A: The question is based on the concept of asset price channel in monetary policy of a country

Q: Define Foreign exchange risk.

A: The term foreign exchange risk is defined as, the risk of an ominous variation in the settlement…

Q: What are pegged exchange rates?

A: Pegged exchange rate: It is otherwise called a fixed exchange rate, which is a kind of conversion…

Q: What is foreign trade balance?

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

Q: why a organisation should consider hedging net payables or net receivables with currency options…

A: Answer: Hedging is nothing but an investment risk management strategy that reduces or controls the…

Q: Who are the major actors in the exchange rate market and what are their roles?

A: The exchange rate market is also known as the Forex, it is a market for the changing home currency…

Q: Define foreign currency hedges.

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

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: 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: Describe about the foreign currency risk.

A: Foreign currency- As we know every country has its own currencies in which it operates. Hence,…

Q: What is foreign currency?

A: In terms of finance, foreign currency is a familiar term in FOREX (Foreign Exchange) transactions.

Q: What are the similarities of money and currency?

A: Money refers to the medium of economic exchange between individuals for their financial and economic…

Q: What is a convertible currency?

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

Q: Do you think Balance of Payment and its different components have any role in determining the…

A: Balance of Payments: It is the difference in the money flowing in the country & the money…

Q: What are the consequences of accounting for foreign currency translation on financial statement…

A: Introduction:   According to IAS 21, if an entity has an activity in a foreign nation, its financial…

Q: Explore the concept of arbitrage on the currency exchange markets and critically evaluate with…

A: Arbitrage is the practice of purchasing and selling an item in numerous markets at the same time in…

Q: What is nonconvertible currency?

A: Convertible currency: A currency that can be easily swapped into another currency for any…

Q: How do you determine and calculate return and risk on foreign exchange transactions

A: Foreign exchange transactions are those transactions which are undertaken between citizens of one…

Q: Exchange Rates How – using which policies and instruments - does Central Bank regulate exchange…

A: Central bank is the apex bank that extends its banking services to commercial bank and government of…

Q: Define currency swap

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: What is foreign exchange rate?

A: The foreign exchange rate is the relative representation of domestic currency in terms of value of…

Q: Explain monetary policy.

A: Monetary policy is the plan of action of a country's central bank (CB). The main aim is to control…

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: What is the importance of Foreign Exchange Market?

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

Q: refers to the price of one country's currency in units of another country's currency. The

A: The rate at which two different currencies of two different countries can be exchanged for each…

Q: The functional currency is ?

A: Functional currency:

Q: Show the different arguments put forward by the proponents and opponents of currency hedging?

A: Following reasons are given by opponents of hedging: Managers cannot outguess the market.…

Q: What is the international monetary system?

A: International monetary system is the operating system and rules that govern the use of financial…

Q: What is Currency options?

A: In the given question we need to define what is currency options.

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

A: Foreign exchange intervention comes when a central bank or the government may assess that its…

Q: Show the different arguments put forward by the proponents and opponents of currency hedging?

A: Currency Hedging: Currency Hedging is the act of getting into a financial contract in order to guard…

Q: ernational monetary system.

A: Monetary system : In simple words, A monetary mechanism is a method of providing funds to a…

Q: Explain the need for and problems associated with forecasting foreign  exchange rate

A: An exchange rate forecast indicates the expectation about future value of exchange rates at a future…