plain this function of BSP -Liquidity management -determination of exchange rate policy -lender of last resort

Q: Which of the following is not a primary function of Money? a. All the options are correct b.…

A: Money is any item or verifiable record that is generally accepted as payment for goods and services

Q: Which of the following is not a Money Market Instrument? a. Commercial Paper b. Debentures c.…

A: Money market is related to short term debt instruments and not long term debt instruments.

Q: Describe what is meant by the virtualization of traditional trade finance instruments.

A: First of all we need to understand what is Trade Finance Instruments: It is a payment instrument and…

Q: What is Internal Rate of Return - All Cash Deal?  Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be…

Q: Identify under which one of the following market the issue of treasury bills lies: a. Foreign…

A: Foreign Currency Market- It is an over-the counter marketplace where participants buy, sell,…

Q: Define currency appreciation

A: Answer: The meaning of currency appreciation is nothing but an rise of one currency’s value…

Q: 1. What is the optimum currency area? 2. What is the specie-flow mechanism?

A: Standard disclaimer-Hi there, Thanks for posting the questions. As per our Q&A guidelines, must…

Q: A foreign currency loan is a typical example for   O a. Currency Risk   O b. Interest rate risk…

A: A foreign currency loan is one in which you borrow money in a foreign currency, such as Swiss…

Q: What causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet…

A:

Q: Which one of the following is not a money market instrument?  A.     Treasury bill  B.…

A: Money market instruments are investment securities having a maturity life less than one year. These…

Q: why a organisation should consider hedging net payables or net receivables with currency options…

A: Answer: Hedging is nothing but an investment risk management strategy that reduces or controls the…

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits…

A: A payment system is any mechanism that settles banking transactions by transferring monetary value.…

Q: what is currency issuance in monetary policy? give examples

A: Monetary policy is one of the important policies which is developed with a view to manage and…

Q: Define foreign currency hedges.

A: Definition:   Hedge: The process through which the risk associated with a particular project, can be…

Q: Compare and contrast transaction exposure and economic exposure

A: SOLUTION:- Transaction exposure is the danger a MNC faces when it executes a particular exchange…

Q: Explain what a currency instrument is? Give examples of such currency instrument

A: Currency Instrument - Currency Instruments are those Instrument which is used globally for the…

Q: Define each following terms: p. American depository receipts (ADRs); repatriation of earnings

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: Define Foreign currency hedge.

A: Hedge: The process through which the risk associated with a particular project, can be eliminated is…

Q: What is the role of transferring credit risk? What is the various instruments used to transfer this…

A: Risk transfer is a management strategy that involves transferring the risk from one party to another…

Q: Explain the following: Liquidity management currency issue lender of last resort financial…

A: The above terms are associated with commercial banks and the Central Bank of the country. The terms…

Q: What are the credit transfer markets?

A: Financial market is called as a place where all securities such as bonds, shares, debentures etc.…

Q: Describe techniques for “hedging” againstlosses from fluctuations in exchange rates.

A: Hedging is the strategies used for reducing the risks and impacts of negative changes or…

Q: What is arbitrage? Indicate the forms of arbitrage that we can apply to the foreign exchange market.

A: We have to explain the term arbitrage and identify the forms of arbitrage that can be applied to the…

Q: Discuss the following types of currency risks giving suitable examples: i. Economic risk ii.…

A: EXPLANATION:- Currency Risk Currency ratio is a measurement of loosing money as a result of…