GK
BANKING AWARENESS AND SEBI
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Wash rate
|
|
|
Cross rate
|
|
|
Merchant rate
|
|
|
Composite rate
|
Detailed explanation-1: -A cross rate is an exchange rate calculated by reference to a third currency.
Detailed explanation-2: -A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency.
Detailed explanation-3: -A three-month forward rate is equal to the spot rate multiplied by (1 + the domestic rate times 90/360 / 1 + foreign rate times 90/360). To calculate the forward rate, multiply the spot rate by the ratio of interest rates and adjust for the time until expiration.
Detailed explanation-4: -Cross currency triangulation is the process where one currency is converted to another via a third common currency.