Corporate Fin Mgt NDLM.PDF

(Nora) #1

Visual aid 47 – Balance of Payments


Balance of Payments



  • Exports of Goods and services

  • Sale of existing foreign financial assets

  • Foreign loans and borrowings

  • Imports of goods and services

  • Purchase of foreign financial assets

  • Foreign lendings

  • Foreign direct investment

  • Private short term capital flows

  • Official reserves account

  • Impact of domestic savings, consumption


Faculty will need to refer extensively to the reading material provided for this learning
unit


Visual aid 48 – Monetary system


Monetary system



  • IMF: Capital resources, activities, financing facilities

  • System of Bretton woods

  • IBRD

  • Exchange rate system

  • Fixed exchange rate; floating exchange

  • Context of international trade with reference to liquidity, adjustment and stability

  • Evaluation of international market system.


Faculty will need to refer extensively to the reading material provided for this learning
unit


Visual aid 49 – Foreign exchange market


Foreign exchange market



  • Genesis of foreign exchange market

  • Stakeholders in foreign exchange markets

  • Quotings in foreign currencies

  • Two-way quote: spread and cross rates

  • Settlements: cash, spot, premium, discount

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