Reference no: EM132932868
Explain thoroughly TWO (2) major inter-bank settlement system (with illustration).
a). The RENTAS System
b). The SPICK System
2. Discuss differences and similarities between Domestic Fund Flow & Payment System and International Fund Flow & Payment System (with illustration if necessary).
3. A Malaysian businessman is on an airplane and realizes that he forgot to buy some souvenir in the duty-free shop at the airport. Fortunately, souvenir is sold on the plane. Our businessman wishes to buy a bottle of perfume, for which prices are indicated in the airline magazine in many different currencies. He happens to have in his purse six different currencies for the equivalent of roughly RM200 in each currency, certainly enough to buy some perfume. The currencies he has are USD, JPY, EURO, GBP, SGD and THB. The exchange rates quoted in that day's newspaper and perfume prices listed in the airline magazine are as follows:
Exchange rates Perfume prices
JPY 109 = USD 1.0000 JPY 5300
GBP 0.7000 = USD 1.0000 GBP 34
SDG 1.3 = USD 1.0000 SDG 64
THB 31 = USD 1.0000 THB 1500
EURO 0.82 = USD 1.0000 EURO 40
MYR 4.12 = USD 1.0000 USA 48
Our friend would like to find out in which of the six currencies he should pay, so that he has the lowest cost expressed in MYR. What should he do? Show your relevant calculation work accordingly.