The two major translation methods currently used are:      a. Historical exchange rate and current exchange rate.     b. current rate  and future rate.     c. future rate and temporal.     d. current rate and temporal.

Q: Describe briefly how the HST remittance is calculated.

A: Harmonized sales tax remittance: The harmonized sales tax remittance is the amount of sales tax that…

Q: What is managed floating rate?

A: Managed floating rate: It may be a framework that requires an issuing central bank to mediate…

Q: Define currency manipulator

A: Answer: Currency manipulator means a mark or a label given by US government departments, including…

Q: (d) Based on (c), what will be the ending balance in AFDA? What is net realizable value of A/R?

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: What is floating exchange rates?

A: Floating exchange rate: It is a scale is where the money cost of a country is set by the forex…

Q: Time lines can be constructed for annuities where the payments occur at either the beginning or the…

A: Time lines can be constructed for annuities where the payments occur at either the beginning or the…

Q: Define currency appreciation

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

Q: Explain Computing Holding Period Returns?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: Which would be translated the same under both the current rate and temporal methods? Equipment…

A: Temporal method:- It is considered as the one of the main method of translating a local currency to…

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: Give an example assuming that  the Compounding Period equals to Payment Period?

A: The representation on the basis of assumption:

Q: Define each of the following terms: f. Spot rate; forward exchange rate; discount on forward rate;…

A: The spot rate shall be the value of a good, security, or monetary system for immediate payment.…

Q: difference betweem money market and financial market

A: The financial sector is the delicate network of the economic system, where many different kinds of…

Q: how did you get the effect of the exchange rate?

A: Statement of cash flows is a part of financial statements which is used by the users of financial…

Q: Create a chart reflecting the convention payback period?

A: The chart is presented below:

Q: Explain assumptions related to monetary unit?

A: As per the money measurement assumptions, only quantifiable transactions are recorded in the books…

Q: Define Current Receivables.

A: Current receivables are recorded under current assets of the company.

Q: What is nonconvertible currency?

A: Convertible currency: A currency that can be easily swapped into another currency for any…

Q: Define times-interest-earned (TIE) ratio

A: The number of times can a business pays off its interest obligation with the current earnings is…

Q: How is the PW analysis dependent on the rate of interest used for the PW computation?

A: Net present value (or) PW analysis is one of the capital budgeting techniques. When a company is…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.