Important Points for IC 89 - Management Accounting Exam
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The brokers are the agents of the retail customers who assist in buying and selling of currencies by charging some commission.
Purchasing power parity is defined as the purchasing capacity of one unit of currency, i.e. it indicates the amount of goods and services that can be purchased with one unit of currency.
Purchasing power parity is discussed from two aspects: Absolute Purchasing Power Parity and Relative Purchasing Power Parity.
The International Standard Organisation has devised the codes and symbols for currencies of various countries for being used by SWIFT network in the international bank transaction.
Financial Risk Management is the process and technique of identifying ,analysing, evaluating and managing current and possible future financial risk for a firm with an objective to reduce the firms exposure to future financial risk and stabilise its balance sheet poition.
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