Exchange rates, Financial Management

Assignment Help:

Exchange Rates

The prices at which one country's currency can be changed into that of other country. Although perceptions in the currency markets of the privacy of a country's economic base certainly affect change rate movement, fluctuations are less a function of specific currency market manipulations than the outcome of an entire conglomerate of economic forces experienced on all over the world level, such as inflation rates, political unrest, interest rates, financial market aberrations, and commodity prices. Furthermore, currency rates respond violently to larger economic shocks: local wars, natural disasters, oil cartel maneuvers, and anticipated political and economic actions of the world powers. Within a worldwide economy such as the United States, change rates play a critical role in virtually every aspect of financial management. Organizations that import or export or that competes against industries that import or export should watch exchange rates closely and if mostly enter into futures currency contracts or trade in financial futures to maximize earnings potential.


Related Discussions:- Exchange rates

Measurement of interest rate risk, Changes in the bond value is inversely ...

Changes in the bond value is inversely related to the change in the interest rates. If an investor holds a long bond position, he would incur loss if the in

Determine the method of credit rating, Determine the method of Credit Ratin...

Determine the method of Credit Rating It is obligatory for the issuing companies to get credit rating done on debt securities issues. Credit ratings are also required for Comme

Evaluation of bids, E v aluation of  bids and determination of the lowes...

E v aluation of  bids and determination of the lowest  evaluated responsive and qualified bidder You learnt how to receive and open bids in the previous sub section. Here you

Measure a project’s risk as the change in the cv, Define why we measure a p...

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

Tests for consistency, Tests for Consistency The consistency of the ind...

Tests for Consistency The consistency of the index numbers have been tested over the years. The most important of these tests are: The time reversal test The

Explain the average rate of return method, Q. Explain the Average Rate of r...

Q. Explain the Average Rate of return Method? Average Rate of return Method (ARR): This method is as well known as Accounting Rate of Return Method. It is on the basis of accou

Weighted average cost of capital, Weighted Average Cost of Capital Wei...

Weighted Average Cost of Capital Weighted average cost of capital is the average cost of the costs of several sources of financing. Weighted average cost of capital is also kn

Define a tax create a deadweight loss, Why does a tax create a deadweight l...

Why does a tax create a deadweight loss?  What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd