Question
What was the primary reason for the Reserve Bank of
India’s record $20.2 billion dollar sale in November 2024?Solution
The RBI sold $20.2 billion to stabilize the rupee due to significant Foreign Portfolio Investment (FPI) outflows.
A company imports machinery payable in USD after 6 months. If the liability remains unpaid at year-end and the exchange rate has increased, how should t...
If USD/INR = 83.00 and GBP/USD = 1.25, what is the GBP/INR cross rate?
The 'Tom Next' swap in forex markets refers to:
In the forex market, the 'bid rate' refers to:
If the direct quote in India is USD/INR = 83.50, what is the indirect quote?
Beta Ltd., an Indian company, operates a 100% subsidiary in the UAE. The subsidiary manufactures and sells products only in the Gulf region, incurs cost...
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...
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 ...
The exchange rate system where the value of a currency is determined by market forces is called a:
The exchange rate system where the value of a currency is pegged to another major currency or basket of currencies is called:
