What is fixed exchange rate system?

Q: What is the purchasing power exchange rate?

A: Purchasing power exchange rate is the rate at which one currency is converted into another currency…

Q: why do exporters and importers use bill of exchange?

A: A bill of exchange is a written order that binds one party to pay another party a predetermined sum…

Q: What are Eurodollars?

A: Eurodollars:It refers to the deposit of US dollars in the banks that are located outside the US (and…

Q: Explain pegged exchange rates

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

Q: In the interest parity condition, why does the market exchange rate relate negatively to the…

A: The exchange rate is the rate at which currencies are exchanged for one another in the foreign…

Q: Explain the followings:                          a.    Floating Exchange Rates  b.    Pegged or…

A: The price of a country's currency in reference to the currency of another country. When countries…

Q: Discuss how changes in the expected exchange rate affects current exchange rate

A: The rate at which one country currencies is exchanges with the currencies of another country, such…

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: 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: What are the trade bills?

A: Trade bills are also called Trade Acceptance / Accepted draft

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: country with fixed exchange rate rep plidation on Y, exchange rate E, i, C,

A: The figure is shown as,

Q: What is foreign trade balance?

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

Q: What is interest rate parity?

A: Interest rate parity: Interest rate parity is a theory concerning the association among spot…

Q: What is euro?

A: There are 28 Member States in the European Economic and Monetary Union (EMU), 19 of which have…

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: What is a floating rate system?

A: We know that there are two types of rate Fixed Rate System Floating rate system   Fixed Rate…

Q: What is an alternative trading system (ATS)?

A: Alternative trading systems are generally helpful for people like investors & professional…

Q: What is FX rate?

A: The exchange rate is that rate in which price of the country currency is measured in the term of the…

Q: What is foreign currency?

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

Q: What is forward exchange rate?

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

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: 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: What is an exchange rate?

A: Exchange is the price of one currency derived in another form of currency.

Q: What is exchange rate risk?

A: Exchange rate risk It is a chance of occurrence of loss in the investment value because of uncertain…

Q: What is the benefits of floating exchange rates?

A: Floating Exchange Rate  refers to a methodology where price of currency of a nation is determined by…

Q: What is cross-exchange rate? Give an example.

A: The exchange rate expresses the value of a currency in terms of another currency. It determines the…

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: What is the difference between the time periods being measured with real income and exchange rates?

A: When referring to an individual's income, real income is the amount of money earned after inflation…

Q: What is nonconvertible currency?

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

Q: What is an exchange rate? What is the differencebetween direct and indirect quotations? Whatis a…

A: Introduction: An exchange rate is the value of one currency stated in terms of another currency, or…

Q: The gold standard is a type of floating exchange rate system. a type of managed flexible exchange…

A: Exchange rate: It is the rate at which the value of one currency is exchanged for another currency.

Q: ith practical example ?

A: Currency risk, also called foreign-exchange risk or exchange-rate risk, is the risk that changes in…

Q: The functional currency is ?

A: Functional currency:

Q: What is the international monetary system?

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

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 three main stages at which could be considered the effect of exchange rates? Discuss them…

A: There are three main stages in the life of a transaction exposure that could be considered the…

Q: What is a Eurodollar?

A: Currency refers to the medium through which goods and services are exchanged. Basically, it's the…

Q: What is free trade credit?

A: Trade Credit is a type of credit financing extended by the trader or supplier of goods and services…

Currency Market

The currency market, also known as the foreign exchange market, consists of currencies worldwide. This market determines the rate of all currencies based on the buying and selling of forex. It is an over-the-counter market. It is the largest and most liquid market based on trade volume.