CH9 - SC

CH9 - SC - FOREIGN EXCHANGE MARKETS FACILITATE FOREIGN...

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FOREIGN EXCHANGE FACILITATE FOREIGN TRADE RAISING CAPITAL IN FOREIGN MARKETS TRANSFERRING RISK SPECULATION ON CURRENCY VALUES
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EXCHANGE RATE PRICE OF ONE MONETARY UNIT STATED IN TERMS OF ANOTHER CURRENCY UNIT U.S. $ EQUIVALENT AMOUNT OF DOLLARS THAT YOU GET FOR THE FOREIGN CURRENCY CURRENCY PER U.S. $ AMOUNT OF FOREIGN CURRENCY YOU GET PER U.S. $
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EXCHANGE RATES U.S. $ EQUIVALENT = 1 ÷ CURRENCY PER U.S. $ CURRENCY PER U.S. $ = 1 ÷ U.S. $ EQUIVALENT ARBITRAGE TRANSACTIONS KEEP EXCHANGE RATES CONSISTENT WITH EACH OTHER
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FOREIGN EXCHANGE LARGE BANKS (MONEY-CENTER BANKS) RETAIL LEVEL DEAL WITH INDIVIDUALS AND FIRMS WHOLESALE LEVEL INTERBANK MARKET CENTRAL BANKS (FRS,. .)
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SPOT MARKET CURRENCIES SOLD/PURCHASED "ON THE SPOT" DELIVERY ß WITHIN 2 DAYS (“IMMEDIATE” DELIVERY)
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FORWARD MARKET ACTUAL DELIVERY AND EXCHANGE OF CURRENCIES OCCURS AT SOME TIME "FORWARD" DELIVERY 30, 60, 90, 180 DAYS EXCHANGE RATE FORWARD RATE ESTABLISHED WHEN AGREEMENT IS MADE (NOT AT DELIVERY) ELIMINATES UNCERTAINTY
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CH9 - SC - FOREIGN EXCHANGE MARKETS FACILITATE FOREIGN...

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