Currency Exchange Rates
About the Lecture
The lecture Currency Exchange Rates by Edu Pristine is from the course Archiv - Economics. It contains the following chapters:
- Exchange rates
- Functions of foreign exchange market
- Direct and indirect foreign exchange quotations
- Calculate and interpret the percentage change in the currency relative to another currency
- Calculate and interpret currency cross-rates
Author of lecture Currency Exchange Rates
Edu Pristine
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Excerpts from the accompanying material
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... between nominal and real exchange rates and spot and forward exchange ...
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... " Two types of exchange rates Nominal exchange rate (FX) Real exchange rate " Nominal exchange rate (FX) Amount of currency that is required to buy one unit of other currency Price of one currency in terms of another Example, Assume nominal exchange rate between Indian rupee and US dollar is 45 ...
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... purchasing power of currency Quantity of real goods and services that currencies can actuallypurchase ...
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... by average daily turnover, the foreign exchangemarket is the largest financial ...
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... takes place two days after the trade. Transactions that had to be settled immediately like trading ...
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... exchange rateagreed today Forward contracts are generally for 30,60,90 and 180 days Allows the firm to hedge against exchange rate uncertainty or fluctuations Forward rate can be greater or less than spot exchange rate Forward exchange rate represents the interest ...
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... depreciate " Currency transacting at forward premium is stronger tha n other currency It is expected to appreciate " Currency transacting ...
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... US was 115 and in UK 120. Which of the following statement is true? A. USD has appreciated versus the GBP by 14.67% in real terms B. Real exchange rate in 2009 is $1.72/£ C. The purchasing power of one USD in terms of UK good s and services has increased.In ...
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... Pay off right now as dollar will depreciate against G BP in 3 months. B. Get into a 3 month future agreement to pay at then prevailing exchange rate as dollar will appreciate in 3 months. C. Get into a 3 month future agreement to pay at then prevailing exchange rate as dollar will depreciate in 3 ...
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... " A Since dollar will depreciate in future, its better to make payments today than to delay it and pay at the prevailing exchange rate as the company will have to pay more ...
