Question
ASBA is an important mechanism in the IPO process to
prevent refunding in case of unsuccessful allotment. What is the full form of ASBA?Solution
Applications Supported by Blocked Amount (ASBA) is a method developed by SEBI to block the funds for Initial Public Offer (IPO), Rights issue, Follow-on Public Offer (FPO) etc., applications. In ASBA, an IPO applicant's bank account doesn't get debited until they receive the allotment of shares
The exchange rate system where the value of a currency is determined by market forces is called a:
Exchange rate determination by comparing purchasing power of currencies is:
A foreign subsidiary reports its accounts in USD. On consolidation, the holding company translates the figures into INR. Which rate should be used for i...
If USD/INR = 83.00 and GBP/USD = 1.25, what is the GBP/INR cross rate?
The theory that states the exchange rate between two currencies is determined by the relative price levels in the two countries is the:
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A firm in India has to pay €5 million in 3 months. They expect the rupee to depreciate against the euro. Which of the following hedging tools will bes...
The difference between the buying and selling rates quoted by a dealer is called:
An Indian exporter receives a payment of USD 50,000 when the exchange rate is ₹83/USD. At the year-end, the rate drops to ₹80/USD and the amount is ...
ParentCo has a net investment in foreign subsidiary of USD 50m. It borrows USD 30m to hedge part of the net investment. The USD loan is designated as a ...
