2016
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Electronic Codebook
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Extra Care Bucks
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External Commercial Borrowings
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Extra Common Borrow
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Detailed explanation-1: -Meaning of ECB Hedging It is a mechanism in which the price movements of a particular asset can be controlled.
Detailed explanation-2: -External Commercial Borrowings (ECB) and Trade Credits.
Detailed explanation-3: -Introduction: External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc.
Detailed explanation-4: -“Natural hedge” shall mean a hedge arising out of the operations of the company when cash flows offset the risk arising out of the Foreign Currency exposure (FCE). Note: An exposure shall be considered as naturally hedged only if the offsetting exposure has the maturity / cash flow within the same accounting year.