Important Points for IC 89 - Management Accounting Exam
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Fixed Income Instrument as an asset class offers multiple options to be investor, each with its own unique features. The choice of product should depend on your: Risk appetite, Liquidity needs, Investment horizon and Tax considerations.
The Investors need to consider four important factors in their investment decisions ever fo fixed income options. Those four important factors are: Security, Return, Liquidity and Taxability of Income.
The exchange rate (ER) is the price of one countrys currency in terms of another currency, which is determined in the Foreign Exchange Market.
In the global market today, the currency of country is traded against anothers in a profitable manner. The market that enables this trade of currency is called Foreign Exchange Market.
There may be different kinds of transactions that take place in a foreign exchange market such as: Spot Transactions, Forward Transactions and Swap Transactions.