--%>

What is Market for foreign exchange

Provide a complete definition of Market for foreign exchange.

E

Expert

Verified

The foreign exchange (FX) market involves conversion of purchasing power from one currency into the other, extension of the credit denominated in the foreign currency, bank deposits of foreign currency, financing and trading in the foreign currency options and the futures contracts.

   Related Questions in Financial Accounting

  • Q : European term bid-ask quotes Restate

    Restate following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot               1.3431-1.3436

    Q : Abnormal profits Atypically large

      Atypically large proceeds made by an individual or company from commercial activity. An abnormal profit exceeds the normal chance for profit derived from labor costs and capital and considered normal profit. Abnormal profit in a business resides of monopoly and consortium profits.

  • Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

  • Q : Corruption of Creativity Explain the

    Explain the Corruption of Creativity in Creative Industry ? Explain in brief.

  • Q : Report on Digital Marketing Strategy

    Working individually you are required to produce a 2000 word report based on promoting the website you developed. (Your main objective is to increase the volume of traffic to your website).You should justify the best digital communication tools and criticall

  • Q : Random walk model for exchange rate

    Explain about random walk model for exchange rate forecasting. Will it be reliable with the technical analysis?

  • Q : Demerits of implementing Uniform Costing

    Write down the demerits of implementing Uniform Costing?

  • Q : Define Budgetary Control Give a brief

    Give a brief introduction of the term ‘Budgetary Control’ also writes down its characteristics?

  • Q : Foreign entity’s functional and parent

    Specify some of instances under FASB 52 that foreign entity’s functional currency would be same as the parent firm’s currency.

  • Q : Portfolio of Sharemarket SHAREMARKET

     SHAREMARKET ASSIGNMENT SHEET  - Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to