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.

Management Accounting

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