The two major translation methods currently used are:      a. Historical exchange rate and current exchange rate.     b. current rate  and future rate.     c. future rate and temporal.     d. current rate and temporal.

Q: rence rat

A: Introduction :  In simple words, Reference rate can be understood as the rate that is utilized to…

Q: What concept underlies the temporal method of translation? What concept underlies the current rate…

A: The basic objective underlying the temporal method of translation is to produce a set of U.S.…

Q: Which of the following refers to the transaction in which the exchange of currencies takes place at…

A: Introduction: Foreign exchange: Buying and selling of different countries currencies called as…

Q: (c) Show clearly how the trade payables should be recognised initially and how the subsequent…

A: Entity 2 purchased a specialist machine from a US Supplier on 1st Jan 2021. The price of the machine…

Q: Define each of the following terms: e. Freely floating regime; managed-float regime

A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: direct and indirect relationships between balance of payment and inflation rate.

A:

Q: Describe the method used to establish the Economic equivalence at period 0?

A: Economic Equivalence sets the cash flows in such a way that its value is adjusted for the time…

Q: state the importance of Balance of International Payment

A: The Balance of International Payment (or simply the Balance of Payment or BoP) is that statement…

Q: Which of the following items is remeasured using the current exchange rate under the temporal…

A:

Q: Which of the following is not an established method of translation? O a. Forward method O b.…

A: If a business entity operates in other countries, different currencies are used for reporting the…

Q: al Currency, Functional Currency and Pre

A: Local currencies are currencies that circulate mostly locally and at a community level. They work as…

Q: Define each of the following terms: f. Spot rate; forward exchange rate; discount on forward rate;…

A: The spot rate shall be the value of a good, security, or monetary system for immediate payment.…

Q: exchange.

A: An exchange could be a marketplace wherever securities, commodities, derivatives and different money…

Q: How is the Equivalence Calculations made with Effective Interest Rates?

A: The formula for Effective annual rate is  Where, r - rate of return n - number of compounding.…

Q: Differentiate between spot and forward exchange rates

A: Introduction: The spot rate is the rate at which the actual deal or sale is to take place…

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: Give a detailed answer to the theoretical question Display graphically and explain the mechanism of…

A: Bills of exchange indicate a written agreement stating the obligation of one party to pay the due…

Q: Trade and other payables includes what?

A: The balance sheet is the financial statements of the business that show the assets and liabilities…

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: Which are two types of interest rates are used in equivalence calculations?

A: Equivalence calculation is used for analysis of an investment or a project based upon the the…

Q: What is the concept underlying the current rate method of translation? What is the concept…

A: There are two main methods of currency translation accounting: The current method -when the…

Q: Define currency swap

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

Q: Describe the widely used currency derivatives.

A: Currency Derivatives: These are the contracts that generate their value from their underlying…

Q: types of even... Transactions include which two types of events? Multiple Choice Monetary events and…

A: An accounting event refers to a transaction that is perceived in the financial reports of a…

Q: Which of the following refers to the current rate used for the purpose of translations? O a. The…

A: Financial statements are the reports that are prepared and maintained by a business in order to…

Q: illustrate the different exchange rates regimes.

A:

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: Describe the Equivalence Calculations with Effective Interest Rates?

A: The effective interest rate is the real interest rate that is charged on the loan amount when the…

Q: What is the difference between an exchange and a nonexchange transaction?

A: A transaction is considered to be an exchange when both parties provide and receive consideration of…

Q: Explain the meaning of a "trade balance"

A: Answer: Trade Balance is basically the difference between the country's imports and exports. It is…

Q: difference between Trade Payable and Other Payable with relevant examples

A: Trade Payable and Other Payable are current liabilities of a business to be payable within one…

Q: Define Historical exchange rates

A: exchange rates: value of one currency for the purpose of conversion into another currency.

Q: Explain the characteristics of a bill of exchange and state the ways a bill of exchange Inay be…

A: The question is related to Bill of exchange. A Bill of Exchange has been defined as an instrument in…

Q: Define Functional currency

A: currency : Currency is the medium of exchange of goods and services.

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.