What is foreign 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 is meant by Foreign Exchange Markets?

A:

Q: What is foreign exchange FX risk?

A: Foreign exchange risk: It alludes to the misfortunes, due to currency or money changes, that a…

Q: How does inflation rate affect exchange rate?

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

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: What can be understood from Foreign Exchange Rates?

A: Foreign exchange rate: A foreign exchange rate is the comparative value among two currencies. Merely…

Q: what is Accounting for Foreign Currency Transactions

A: A transaction is said to be a foreign currency transaction when such transaction takes place between…

Q: How much is the net foreign exchange gain (loss), recognized in surplus or deficit from the…

A: When an entity purchases on account in foreign currency, then they have to revalue that foreign…

Q: Define the term exchange rate?

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

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: How does an investor earn in the foreign exchange market?

A: The foreign exchange market comes into exitance where currencies of different countries can be…

Q: Why does a money has an intristic value and a currency doesn't have an intristic value?

A: The estimate of an asset's worth based on a financial model is known as the intrinsic value in…

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: What is the rationale for the remeasurement of foreign currency transactions?

A: Remeasurement: Remeasurement refers to re-evaluation of a physical asset or foreign currency in the…

Q: Does Arbitrage destabilize foreign exchange markets? Support your logic about that statement

A: Solution- F = S*1+if/1+id  F= Forward Exchange Rate  S= Current Spot Exchange Rate  Id= Interest…

Q: What is euro?

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

Q: What is home currency?

A: Home currency is a currency that is functional in the country in which business is situated. For…

Q: Who are the players in the foreign exchange market?

A: The currency market, often known as the foreign exchange market, is a global decentralized or…

Q: Define domestic currency

A: The domestic currency is a currency that is the local currency for every country. Every Trade…

Q: Define foreign currency hedges.

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

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 ARE THE FEATURES AND TYPES OF FOREIGN TRADE?

A: Foreign trade are the trade between two or more countries.there are generally two types of trade…

Q: What is the difference between the concepts of surplus and trade deficit in international trade? Why…

A: International trade is necessary for any country as the resources are not in equity. Many countries…

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 a convertible currency?

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

Q: does it reduce forei

A: Financial instruments can be regarded as capital bundles that can be traded, or as assets that can…

Q: Describe direct foreign investment process?

A: Step 1 A foreign direct investment (FDI) is a financial investment made by a company or individual…

Q: What is the value of a unit of domestic currency against foreign currency? A) Parity B) Exchange…

A: The exchange rate is the percentage of foreign currency in domestic currency units, or, in another…

Q: What does the term functional currency mean? How is the functional currency determined under IFRS…

A: In today's world, a business is operated in multiple countries that uses different currencies.…

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: What are the advantages or the disadvantages of hedging with currency options as opposed to future…

A: Hedging is used to insulate the investor of the risks of currency fluctuations in an international…

Q: What is Currency options?

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