PPT-Exchange Rates Currency Currency is a generally accepted form of money

Currencies can be traded for or used to purchase Goods or services Financial assets Other currencies Most countries have control over production of their currency Some countries share the same currency and some rely on another countrys currency . There are two “pure” types of exchange-rate systems:. Flexible Exchange Rates - a flexible, or floating-exchange-rate system, through which demand and supply determine exchange rates and in which no government intervention occurs.. In international trade it becomes necessary for individuals in different countries who want to buy and sell from one another to exchange currencies. There are approximately 150 different currencies in circulation in the world today. In the process of trading between nations, foreign exchanges of currency must be made.. the Central Bank. Chapter 19. Exchange Rates are Volatile. Costs of Volatile Exchange Rates. Exchange rate volatility increases risk in international finance. . Ex. Many developing economy corporates issue securities in US$. An exchange rate devaluation will make this more expensive to repay. . Lesson . 5. Slide . 5. A. What . Does . That. Mean? . Term. Definition . conversion . the exchange of one country or economic unit’s currency for another.. exchange rate . the rate at which the currency of one country may be exchanged for that of another.. While budgeting may not be something you are naturally inclined to do, if you are planning for something like a vacation that has the potential to rack up hundreds of dollars in expenses, it is often the most sensible option, particularly if you are not in a high earning bracket or have other daily costs and expenditures to consider. Jennie Morse. BA 543. Evening Section. Agenda. Intro. Exchange Rates. Forex. Market. Hedging vs. Arbitrage. Currency Derivatives. Forward Contracts. Futures Contracts. Options. Swaps. Conclusion and Questions. Making the decision to go on vacation is an exciting one, and for some, it’s the highlight of their year, or life - depending on what kind of vacation they’re planning! However, making the decision to go somewhere might well be the easy part, what’s trickier, is deciding where to go. If you’re the type of person who has an annual vacation that you look forward to every year, do you ever find that you put yourself under intense pressure to ensure that the vacation is as perfect as it can be? With just one opportunity a year to have some time away from work or other constraints with friends or family, do you feel that if your vacation is not perfect in every way, then somehow you have failed and wasted your chance? Whatever your experience has been with planning a vacation, there is no doubt that it can be enjoyable and need not be a ticking time bomb of stress and arguments waiting to explode! Here are a few quick tips to help you plan for the perfect getaway and minimize the stress levels while maximizing the fun: Monsoon vacations aren’t everybody’s cup of tea, but many people find this time of year exhilarating; either that or prices are at their cheapest during the monsoon season while everybody else waits out the storms in their homes! It’s hard to resist the pull of an exotic beach vacation; waves gently lapping onto the shoreline, soft, warm sand and palm trees swaying in the tropical breeze. Whether you want to simply sunbathe on an exotic beach or stroll the shore spotting wildlife, these are some of the best exotic beach vacation spots that you can’t afford to miss out on: Describe the three uses of money. Identify and explain the six characteristics of money. Understand the sources of money’s value. Do Now. What do you think is the difference between currency and money?. Explain how exchange rate movements are measured.. Explain how the equilibrium exchange rate is determined.. Examine factors that determine the equilibrium exchange rate.. Explain . the movement in cross exchange rates.. Babar Ali, CFA. Senior Joint Director,. Domestic markets & Monetary Management Department. State Bank of Pakistan. Why Foreign Exchange . Unlike barter system, currencies ensure smooth transactions.