Important Points for IC 89 - Management Accounting Exam
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The difference between bid and offer is Spread.
Cross rates refers to the Exchange rate which is expressed by a pair of currencies in which none of the currencies is the currency of the country.
Business entities are required to render exchange rate of forecasting for taking various decisions. There are various techniques of Exchange rate forecasting such as : Technical forecasting, Fundamental forecasting and Market based forecasting
Foreign Exchange Market is divided into two basic levels on the basis of transactions in the market and access to it. The first level of the market is occupied by the inter-bank market comprising commercial bank, investment bankers, central banks and Non-banking financial institutions of countries, while the other level consists of small banks, MNCs. hedge funds and retailers.
The Exchange Market can be dividend into a whole sale segment and the retail segment. In the whole sale segment, inter-bank dealings are carried out. In the retail segment, the travelers can exchange currencies of one country for that of the other.
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