Corporate Fin Mgt NDLM.PDF

Payments as interest and dividends, tourism payments for travel and financial charges (-) Balance on Services Account = A(II) Un ...

If overall balance (current plus capital) is in deficit, this implies either a reduction in reserves or an increase in foreign d ...

International Monetary System In the context of international trade, the problems that crop up relate to : (i) liquidity, (ii) ...

Since 1970, a new instrument of reserve has been created, namely SDR (Special Drawing Right). The value of SDR represents a weig ...

created in response to specific needs such as oil price increases, and the Special Emergency Fund created by the General Agreeme ...

French franc 6.53883 Deutschmark 1.94964 Dutch guilder 2.19674 Belgian franc 40.21223 Irish pound 0.808628 Spanish peseta 154.25 ...

European Bank Of Investment (EBI) The European Bank of Investment was created in 1958 with the major objective of balanced dev ...

c) Development of a single monetary policy having an objective of price stability and the support to the economic policies of th ...

The Maastricht Treaty institutes an European System of Central Bank (ESCB) with supra-national institution, called European Cent ...

Spread means the difference between banks’s buying (bid) and selling (offer or ask) rates in an exchange rate quotation or an in ...

Theory Of Purchasing Power Parity (Ppp) This theory was enunciated by Gustav Cassel. Purchasing power of a currency is determi ...

Method of Advanced Indicators Several indicators are used for prediction of exchange rates. One important indicator widely use ...

There are two types of techniques to cover exchange rate risk: internal techniques, adopted by the enterprise to limit the excha ...

This method is a noble one. However, an enterprise suffers under this method if the national currency appreciates; this is likel ...

contract and payment, will be shared by the two in accordance with a certain formula, for example, half-half or one-third, two-t ...

Cross-Credit Swaps In this kind of swap, there is an exchange of foreign currencies between a parent company and, say, a bank ...

An exporter may, agree to give discount for early payment. This discount represents a cost for the exporter. But by doing so, he ...

Separate group exercises will be given regarding using of some of these techniques. Covering a Consolidation Exposure The magn ...

Present credits and debts; Future credits and debts; and Conditional credits and debts. An interest rate position either on th ...

On the other hand, a decrease in market yield induces a price increase that results into capital gain if the investor liquidates ...