Question
1. List the factors that affect the value of a currency in foreign exchange markets 2. Explain. how exports and imports tend to influence the
1. List the factors that affect the value of a currency in foreign exchange markets
2. Explain. how exports and imports tend to influence the value of a currency.
3. Differentiate between the spot exchange rate and the forward exchange
4. What is meant by translation exposure in terms of foreign exchange risk?
5. What procedures would you recommend for a multinational company in studying exposure to political risk? what actual strategies can be used to guard against such risk?
6. What is LIBOR? How does it compare to the U.S. Prime rate?
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Answer 1 Factors affecting currency value in foreign exchange markets Interest rates Higher interest rates attract foreign investment increasing demand for the currency and raising its value Inflation ...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
