Question: please assist : A sound financial system is the backbone of a developing economy. Do you agree with the statement? Give your arguments by illustrating
please assist :
- A sound financial system is the backbone of a developing economy. Do you agree with the statement? Give your arguments by illustrating each of them.
- The forex markets are different kinds of markets where customers are connected globally. Elaborate.
- More the risks more are going to be the returns. What types of risk exist in the international foreign exchange markets? Do we have any risk management system as well?
- How the currency exchange rates are determined? What role is played by the interest rates in determining the exchange rates? Explain by giving an practical example.
- Assume zero transaction costs:
A: /U$ = 106.50, B: C$/U$ = 1.3215 , C: /C$ = 82.905
- Determine if triangular arbitrage is feasible.
- State what you would do to profit from arbitrage.
- Obtain the percentage profit possible.
- Financial markets need to be regulated and controlled. Do you agree with the statement?
- Elaborate by explaining the types of financial markets and role of central bank in an international scenario
- Also can you relate the regulation with the recent global financial crisis?
- What do you mean by term structure of interest rates? Explain three main theories of the term structure that have been proposed.
- What do you understand by: SLR, CRR, Deposit creation, Repo & Reverse Repo rate. Explain these terms through a balance sheet of a bank?
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