BANKING AFFAIRS

Detailed explanation-1: -Foreign assets comprise assets that are not denominated in the domestic currency of the country. All income generated by a foreign asset is in terms of foreign currency. For example, US Government bonds pay interest in US dollars, and Japanese Government bonds pay interest in Japanese yen.

Detailed explanation-2: -The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency. Currency pairs compare the value of one currency to another-the base currency (or the first one) versus the second or the quote currency.

Detailed explanation-3: -Foreign currency valuation is a term used by vendors of Enterprise Currency Management vendors to record the impact of foreign currency changes into its FX-denominated assets, liabilities, revenues, expenses, gains and losses.

Detailed explanation-4: -Key Takeaways The quote currency (counter currency) is the second currency in both a direct and indirect currency pair and is used to value the base currency. Currency quotes show many units of the quote currency they will need to exchange for one unit of the first (base) currency.