Exchange Rate
- Finance
Forward Rate Agreements Interest Rate Options and Caps and Collars
Forward rate agreements. Under a forward rate agreement (FRA) the seller agrees to lend to the buyer a specified amount…
Read More » - Finance
Range Forwards and Ratio Range Forwards : Are They Useful
Range Forwards. Effective from September 19, 1996, corporates are allowed to freely book and cancel options. Banks have been permitted…
Read More » - Business
Difference Between Fixed And Floating Rate Of Exchange
Fixed exchange rates refer to the gold standard under which the rate of exchange tends to stabilise around the mint…
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The Factors Which Influence The Movement Of Exchange Rates In The Foreign Exchange Markets
At present major currencies of the world are fluctuating. The rates of exchange between currencies are determined by the forces…
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The Balance of Payments Theory of determination of Exchange Rates
The balance of payments theory states that the rate of exchange is determined by the forces of demand and supply…
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The Purchasing Power Parity Theory of determination of Exchange Rates
Purchasing Power Parity Theory. The determination of rate under paper currency standard is endeavoured to be explained by the purchasing…
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The Mint Par Theory of determination of Exchange Rates
Three different theories have been evolved to explain the rate of exchange between currencies of different countries. They are: (i)…
Read More » - International Business
What is Extension of Forward Contracts
An exporter finds that he is unable to export on the due date but expects to do so in about…
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The Exchange Rate Applicable in Case of Cancellation of a Forward Purchase Contracts
The customer may approach the bank for cancellation when the underlying transaction becomes infructuous, or for any other reason he…
Read More » - International Business
The Formalities to be Complied with Particular Reference to Exchange Control Regulations
While booking forward contracts for customers, banks are required to observe that the exchange control regulations are complied with. The…
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