What is economic extortion?

Q: What is capital rationing?

A:

Q: What is hard currency?

A: Hard currency: It alludes to cash published by a country seen as politically and financially steady.

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: what is money market hedge

A: A money market hedge is a helpful tool that helps firms to maintain the exchange rate risk.

Q: What is financial material abuse?

A: Financial Material Abuse - Financial material abuse refers to the abuse of  fraud , theft or making…

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: Is illegal activity included in GDP?

A: Gross Domestic Product is the value of finished goods and services produced in an economy during the…

Q: How to avoid rogue trading? What are the consequences of rougue trading?

A: A rogue trader is a trader who acts recklessly and without regard for others, usually to the…

Q: What is currency appreciation?

A: It is defined as the increase or improvement in the estimation of a national money over the…

Q: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that 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 are the disadvantage of embracing digital currencies in investment or financial transaction?

A: Digital money is money that only exists in digital form. This is neither a tangible item like…

Q: What is private markets?

A: Private markets are generally platform for parties like venture capitalists, angel investors,…

Q: What is the worst that can happen if you invest your money?

A: Investors have different options to make investments, and the motive behind investments is to…

Q: What is securitization?

A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…

Q: What is the major advantage of using a fee-only financialplanner?

A: There are different types of financial planners to help investors plan their finances. Majorly,…

Q: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?

A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…

Q: What justifies an exporter financing an importer? Is Explain.

A: There are imports and there are exports both are necessary parts of international trade and finance…

Q: What is money market?

A: Introduction: Money market is a market for short period funds or financial assets. It deals with…

Q: credibillity of monetary policies

A: Monetary policy is a policy formulated by the central bank of a country. It stabilizes the supply of…

Q: Why is it often difficult for the averageinvestor to take advantage of underpricing?

A: Under Pricing of the stock refers to the situation when the current market price of the company’s…

Q: What is currency manipulation?

A: Introduction: Currency manipulation is considering as when countries purposely impact the exchange…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: What are the distinguishing features of a money market instrument?

A: money market: It refers to trading in very short term debt investments.

Q: Why monetary policy is important?

A: Monetary policy is the policy which controls the supply of money available in the country to promote…

Q: What are economic agents?

A: Examples of economic Agents: Departmental heads, production manager (internal agents), and supplier…

Q: Why aren't economic incentives as complex as we think?

A: Generally, an incentive means something that motivates a person to do a task/job/goal/etc.…

Q: What is the relationship between profit and ethics?

A: Every business entity who is operating whether it is manufacturing business or service company want…

Q: What is currency depreciation?

A: Currency depreciation is the depreciation in value of a currency in relation to supply and demand in…

Q: Where does the economic equivalence exist? What are its side effects?

A: The existence of economic equivalence is in between the cash flows having a similar economic effect…

Q: What is market value?

A: Market value is the competitive price at which an asset will sell in the market. It is the highest…

Q: Describe insider trading.  Why is it illegal?

A: Trading means trading securities. Here, the securities are the financial securities which will be…

Q: ith practical example ?

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

Q: What are the distinguishing features of a money market instrument? Please answer in broad

A: The market where buyer and seller interact in order to buying and selling of short-term securities…

Q: What’s the difference between free trade credit and costly tradecredit?

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

Q: hat are the tools of monetary policy?

A: The monetary policy is the policy that is adopted by the central banks or the monetary authorities…

Q: How can brokers and dealers make money? Which activity is riskier? Why?

A: Brokers make money generally by charging the commission on the transaction as the % of the…

Q: What are the weaknesses of the payback method?

A: Payback period is the amount of time required for firm to recover its initial investment in projects…