Forex Quotation Illustration 9
Forex Quotation Illustration 9 Study following quotes: EUR INR 47.95 and AED INR 12.93 [AED is Arab Emirates Dirham].What is EUR AED rate? (Ans:...
International Finance
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Forex and Interest Rate Illustration 3
Currency Units: E.g. Currency $: 0.6650/DM (Spot) Currency $: 0.6700/ DM (3-months) Interest Rates: DM: 7.00% per annum Currency $: 9.00% per annum Calculate arbitrage...
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Arbitrage Illustration 9
Arbitrage Illustration 9 Two banks are quoting the following US$ rates: Bank A : 47.9810 – 48.1110 Bank B : 48.0110 – 48.2350 Find out...
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How far SDR’s have been able to solve the problem of international liquidity?
As the Bretton Woods system started facing problems, and the pressure on the dollar increased, a new reserve asset named SDRs was created by IMF...
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What is Triffins Paradox?
TRIFFINS PARADOX: The success of the Bretton Woods System was essentially based on the voluntary trade deficit accepted by the US. This step resulted in...
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Explain Dealing Room Transactions
DEALING ROOM TRANSACTIONS: The transaction flow in the dealing room is as follows: All transactions in the dealing room can be classified as either: •...
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What is DR Arbitrage?
DR Arbitrage : Depository Receipts may trade in the international markets at a discount or mium to the price of the underlying shares in the...
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What are the Risks faced by Commercial Banks?
RISKS FACED BY COMMERCIAL BANKS : 1. Transaction Risk : Banks continuously quote rates for different transactions and currencies to their customers. After the rates...
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What are the Advantages and Disadvantages of FPI?
Advantages of FPI : 1. There is a substantial increase in the secondary market depth and breadth due to the presence of such investors. 2....
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Mix Of AFM And Interest Rate Illustration 2
Mix Of AFM And Interest Rate Illustration 2 USD INR 48 Spot Interest rates: India 9% per annum and US of A 4.7835% per annum....
