Home // Automotive

PPT : Money and Banking – Foreign Exchange & the International Monetary System

Content Inside :

Foreign Exchange Market
* Abbreviation: FOREX
* Over a trillion dollars worth are traded daily.
* Most trading is to finance the purchase of assets
* (e.g., bank deposits), not goods and services.
* OTC (several hundred dealers, mostly banks)
* Wholesale vs. retail

Euro-dollar quote of $1.2120
The euro is the BASE currency.
The dollar is the TERMS currency.

Purchasing Power Parity Theory
A method of calculating exchange rates that attempts to value currencies at rates such that each currency will buy an equal basket of goods.
Creates a balance in trade. When a country has an inflation, its currency depreciates.

Other factors affecting exchange rates
* Tariffs and quotas
* Import demand
* Export demand
* Productivity

Volatility in forex market not explained by PPPT
Purchasing power changes gradually. Exchange rates change rapidly.
Asset Demand Theory
Exchange rates adjust so that expected returns across assets of equal risk are equalized.
So if the expected return on European assets is higher than ones in the U.S. assets, the value of the Euro will appreciate.
In equilibrium all expected returns are equal.

My be you need full description for PPT : Money and Banking – Foreign Exchange & the International Monetary System, you can download this PPT : Money and Banking – Foreign Exchange & the International Monetary System or online view this PPT : Money and Banking – Foreign Exchange & the International Monetary System document. This PPT : Money and Banking – Foreign Exchange & the International Monetary System powerpoint presentation available from category Automotive. Download Seminar Paper Powerpoint Presentation PPT : Money and Banking – Foreign Exchange & the International Monetary System PPT slide and get information about PPT : Money and Banking – Foreign Exchange & the International Monetary System.

PPT : Money and Banking – Foreign Exchange & the International Monetary System.ppt


PPT : Money and Banking – Foreign Exchange & the International Monetary System Category : Automotive
Source : home.manhattan.edu
File Size : 293 Kb
Language : English
Online View : Preview
Download : 242 times

Share this info:

Tags: , , , ,

"We do our best to publish and share Non Copyrighted Material on this blog, We merely take the power of Google Search(ppt search), forums, social bookmarks to find those materials and link to it. None of those materials are hosted in this server. We are neither affiliated with authors of any site nor responsible for its content and change of content. If you see unrelated pdf files with the description or copyrighted materials published on this blog, please contact us, we'll take action as soon as possible. Please read our Disclaimer for more detail."

Get Latest Update for Seminar PPT

Enter your email address:

Related Presentation