Exchange Rates (Forex - Direct & Indirect Quotes) | CA Final SFM (New Syllabus) Classes & Videos скачать в хорошем качестве

Exchange Rates (Forex - Direct & Indirect Quotes) | CA Final SFM (New Syllabus) Classes & Videos

We simplify your financial learnings. ►►CA Final AFM Courses: https://www.sfmguru.com/products/CA%2... ►►CMA Final SFM Courses: https://www.sfmguru.com/products/CMA?... ►►CFA Level 1: https://www.sfmguru.com/products/CFA?... ►►Subscribe here to learn more of Strategic Financial Management: https://goo.gl/HTY5SN ►►Read more on our website: https://www.sfmguru.com/blogs What is an Exchange Rate? A rate at which one currency can be exchanged with the other. It is a rate at which one currency expressed in terms of the other. It is a rate at which a currency can be bought or sold. What do you mean by Direct Quote? US$ 1 = INR 65 • In the above quoted exchange rate: • The quote is given for 1 unit of $. • In this given quote, $ behaves like a commodity. • For an entity in India, $ is a foreign currency. • The given quote is for 1 unit of foreign currency. • This is a Direct Quote. • In a Direct Quote, 1 unit of foreign currency is expressed in terms of local currency. What do you mean by Indirect Quote? INR 1 = $1/65 • In the above quoted exchange rate: • The quote is given for 1 unit of INR. • In this given quote, INR behaves like a commodity. • For an entity in India, INR is a local currency. • The given quote is for 1 unit of local currency. • This is an Indirect Quote. • In an Indirect Quote, 1 unit of local currency is expressed in terms of foreign currency. Note: In order to classify a given Exchange Rate as Direct Quote or Indirect Quote one of the currencies in the quote must be the local currency. #ExchangeRate , #DirectQuote , #IndirectQuote