StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Role of Valuation of a Nations Currency to Another - Term Paper Example

Comments (0) Cite this document
Summary
The author discusses the role of valuation of a nation's currency to another. To maintain a harmonious relationship between trading countries, there should be a mathematical basis for currency exchange. The basis for valuing one’s currency against another is the primary role of a central bank. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.6% of users find it useful
The Role of Valuation of a Nations Currency to Another
Read Text Preview

Extract of sample "The Role of Valuation of a Nations Currency to Another"

Download file to see previous pages 1. Exchange arrangements with no separate legal tender - These are countries that belong to a currency union where there is a common legal tender that is used by all the members. An example of this is the Eurodollar of the European Union.
2. Currency board arrangements - a kind of exchange rate regime implemented by the government based on an explicit legislative commitment in exchanging its local currency for a specific foreign currency with corresponding restrictions that ensures the compliance of its legal obligation.
3. Conventional fixed peg arrangements - a country's exchange rate regime that pegs its currency within margins of less than 1 percent as compared with another currency; a cooperative arrangement; or a basket of currencies, "where the basket is formed from the currencies of major trading or financial partners and weights reflect the geographical distribution of trade, services, or capital flows."
4. Pegged exchange rates within horizontal bands - The currency's value "is maintained within certain margins of fluctuation of more than 1 percent around a fixed central rate or the margin between the maximum and minimum value of the exchange rate exceeds 2 percent."
5. Exchange rates within crawling bands - The currency is maintained within certain fluctuation margins of at least 1 percent around a central rate-or the margin between the maximum and minimum value of the exchange rate exceeds 2 percent and the central rate or margins are adjusted periodically at a fixed rate or in response to changes in selective quantitative indicators.  
6. Managed floating with no predetermined path for the exchange rate - the influence of the monetary authority to the exchange rate is done herein without having a specific exchange rate path or target.  ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Role of Valuation of a Nations Currency to Another Term Paper, n.d.)
The Role of Valuation of a Nations Currency to Another Term Paper. Retrieved from https://studentshare.org/macro-microeconomics/1516519-macroeconomics-college-essay
(The Role of Valuation of a Nations Currency to Another Term Paper)
The Role of Valuation of a Nations Currency to Another Term Paper. https://studentshare.org/macro-microeconomics/1516519-macroeconomics-college-essay.
“The Role of Valuation of a Nations Currency to Another Term Paper”, n.d. https://studentshare.org/macro-microeconomics/1516519-macroeconomics-college-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Role of Valuation of a Nations Currency to Another

Role of secretariat of the United Nations

...? Role of Secretariat of the United Nations Executive Summary The Secretariat of United Nations comprises of different divisions and offices, each one of these divisions is responsible for a particular task. The Executive Office of the Secretary-General includes the Secretary-General as well as his senior consultants. The Secretariat has more or less 25000 staff members on contractual bases for a year or more, from which around 18000 are paid from extra budgetary funds. Workers hired on a contract for less than a year sum up to around 30000 from 180 states. The Secretariat ascertains general guiding principles and offers overall regulation to the Organization. Its headquarters are situated in New York, with regional offices all over...
15 Pages (3750 words) Research Paper

Role of currency futures in risk management

...?Executive Summary This paper examines the role of currency futures in mitigating the impact of adverse movement in foreign exchange rates. The currency futures have been compared with other derivative instruments and it has been emphasized that how currency futures overcome the disadvantages posed by other derivative instruments. Multinational corporations who have denominations in different currencies are largely exposed to foreign exchange risk and they need to eliminate the impact of severe losses due to adverse movements in foreign exchange rates. Various other forms of managing currency risk have been compared with currency futures to determine that which form is the most credible one. Forward contracts have certain advantages over...
10 Pages (2500 words) Essay

Valuation

...? Valuation [N a m e] VALUATION Coca-cola Corporation Coca-cola Corporation is one the leading brands of the worldthat offers non-alcoholic beverages. The company is an American based multinational enterprise having headquartered in Atlanta. Coca-cola Corporation has introduced more than 500 brands and some of the renowned brands are Coke, Diet Coke, Caffeine Free Coca-Cola and Coca-Cola Zero. The company has its presence in more than 200 countries of the world and is more renowned as Coke. More than 1.7 billion people are served every day with the products of Coca-Cola. In 2011, Coca-Cola was also recognized as the most valuable brand in the world on the basis of Interbrand’s best global brand. Pepsi Corporation Pepsi Corporation...
7 Pages (1750 words) Research Paper

Property valuation

...Introduction Property valuation is an exercise in itself. It has to take into consideration a number of factors ly, the location or area of the building, the facilities available in and around the building, proximity to various facilities like education, medical, entertainment, public transport facilities and other facilities. Then there is valuation based on the type of property: whether commercial or residential. Generally, for a given location, the valuation of commercial property is much higher than residential property. The profession and income levels of the residents also influence the value of a property to a certain extent. Case Study : London "The Isle of Dogs now centres around Canary Wharf (Canary Wharf refers to the both...
4 Pages (1000 words) Essay

Currency Forward and Currency Futures

...International Finance Table of Contents Introduction The modern financial markets offer a variety of hedging instruments ranging from forwards to options to futures. Globalization has exposed many companies to foreign currency either in the form of foreign currency receivable or payable. Software exporting companies like IBM that has global operations has receivables denominated in another currency. As a major part of its revenue is in terms of foreign currency, the company is vulnerable to exchange rate fluctuations. To counter this, companies having a global presence hedge their positions by entering into currency options or forwards or futures. This keeps the revenues of the company intact and also caps the amount of its currency...
7 Pages (1750 words) Coursework

Valuation

... of the of Topic: Valuation of Coca Cola and PepsiCo Introduction This seeks to conduct financial analysis and valuation for Coca Cola (CC) and PepsiCo on the basis of available information including those from their annual reports for the past five years. Financial analysis will look at profitability, efficiency, liquidity and leverage position of the companies. Valuation models including DCF and EVA will made applied using company’s financial information and some market ratios. 1.1 Company Profiles Coca-Cola Corporation (or “CC”) is one the leading brands of the world that offers non-alcoholic beverages. The company is an American based multinational enterprise having headquartered in Atlanta. Coca-Cola Corporation has...
13 Pages (3250 words) Research Paper

Role of United Nations

...Role of UN Simply, peacekeeping serves as a technique duly developed by the United Nations (UN) to help control and resolve armed conflict. There are many forms of peacekeeping given it is understood in traditional context or multidimensional context. The United nation’s definition involves both forms of peacekeeping. Peacekeeping is a way to help countries torn by conflict by creating conditions for sustainable peace. (UN Facts, p. 2) After analysing the distinctive periods of war during and after the cold war, it is easy to understand the emergence of peacekeeping as the major source for resolving conflicts. UN plays a critical role in Iraq in terms of the reconstruction, promotion and support of political and national reconciliation...
1 Pages (250 words) Essay

Finance valuation

... Valuation of the Company Equity cash flows refers to the money that the business attempts to gain from external investors. This is usually in the form of common and preferential stocks. Equity financing can be used to measure the performance of the company. A company should preferably have a lower equity ratio as this shows that it can easily pay this debt in case it is demanded. This can be calculated by finding the percentage of the equity debt in relation to the total capital base of the company. The financial statements of the company show that the company has a decreasing level in the shareholders equity of the business. In 2006, the company had a high amount of equity shareholders of 2618000. However this figure has reduced until...
6 Pages (1500 words) Research Paper

Corporate Valuation

...Corporate Valuation The companies that grow, in terms of revenues, at the rates higher than 15% annually can be defined as high-growth companies (Koller et al., 2005). Traditional valuation methods such as the Gordon growth model, dividend discount model, free cash flow to equity, residual income model and the likes are more suitable for the ongoing established companies with stable growth and having a long history of dividend distribution for the last several years or decades. It is quite likely that many high-growth companies in new technology fields may not have a long dividend history or many of them may not have even begun declaring dividends either due to funds needed for the growth of business or for some other reasons...
2 Pages (500 words) Essay

The Role Played by Cultural Difference in International Politics

The discourse of multiculturalism is inconsistent. To its advantages belongs preservation of cultural pluralism, recognition, and protection of the diverse minority, refusal from xenophobia, chauvinism, and racial prejudices. Lacks are shown in ethnisation of social relations, the institutionalization of cultural distinctions, ignoring the liberal principle of priority of the rights of an individual.

The culture of any nation, defining its spiritual uniqueness, expressing its creative power and abilities, simultaneously is a property of all mankind. “According to official multiculturalism, no individual is forced to retain his or her culture, but all cultures are granted a universal right to celebrate and even to...
9 Pages (2250 words) Essay

An Overcorrection of Mary Magdalenes Biblical Role

A purely theological approach to DVC would be impossible since the claims the book makes takes issue with what has been supposedly left out of the bible. This essay will in no way attempt to question whether any non-canonical gospels should be considered; that sort of investigation should be left to historians.

As Brandon Gilvin states in Solving the Da Vinci Code Mystery, “It’s difficult to start a discussion on the creation of the bible from the Bible itself” (7). As the word of God is being questioned, it does us no good to turn to the Gnostic Gospels, the main sources of the claims of Mary Magdalene’s and Jesus’ marriage. In these texts, Mary Magdalene is the most mentioned person after...
11 Pages (2750 words) Essay

The Role of Telecommunications in Growth

If information is significant to advancement, then telecommunications, as a way of sharing information is not only a relationship between people, although a connection in the sequence of the advancement processes itself. The role of telecommunications in broadcasting information can be predominantly important in rural regions where other methods of acquiring and transmission information for instance personal contact, transport, and postal services are expected to be less available.
Distance signifies time, in an all the time more time-conscious world. In economies that rely forcefully upon agriculture or the mining of resources, remoteness from urban markets has usually been improved only with the setting up of enhanced trans...
23 Pages (5750 words) Assignment

An Evaluation of the Role That the Principles of Behaviour Therapy Have to Play in Clinical Hypnosis

Hamburg (2006) first used this combined effort to treat two patients who were scared of dying. He uses his paper to encourage clinicians to refrain from not using their knowledge at the introductory classes of hypnosis but to go into it deeper. Many therapists at that time were taking the bold step of combining behavior therapy with hypnosis (Chaves, 2006). One group used hypnosis for desensitization therapy (Kirsch et al, 1995). However, there was general disagreement about the manner of hypnosis being employed and the methods of mentalist constructs. Chaves who strongly believed in the treatment combination used it as a base for many of his therapeutic interventions (Chaves, 1997a as cited in Chaves, 2006). The hypnotic therapy...
8 Pages (2000 words) Article

Role of the Police and Private Security

... terrorism. Hence understanding the criminal justice system is extremely important so that it may be implemented effectively and impartially. Hence, this report will also cover the following areas namely, the three levels of law enforcement in United States, the interaction between those agencies, the role of the police and private security personnel in homeland security, the role of this group in intelligence gathering and federal funding. Three levels of law enforcement: The three levels of law enforcement in the United States cover national, state and local security. This task of homeland security is the responsibility of the Federal Bureau of Investigation (FBI), the state police forces, and the local police force. Each of them has...
8 Pages (2000 words) Case Study

Comparison of Leading Womens Role in Portrait of Teresa and Salt of Sea

... Number] Comparison of leading Women’s role in Portrait of Teresa and Salt of Sea Every society has different values,traditions and perceptions regarding the role of women that fit within their historical, cultural and social contexts. The cinema being an important cultural institution and reflector of social values tends to depict the role of women in movies to refer their current status as well as to motivate them playing a non traditional role for some specified purposes. In the movies “Portrait of Teresa” and “Salt of the earth” also, the directors Pastor Vega and Herbert Biberman have presented the roles of women in quite encouraging manner to show the women’s potential of playing a revolutionary and defining role in setting up trends...
7 Pages (1750 words) Case Study

China Faces Pressure over Currency

Making its products cheaper in the US and thus encouraging imbalanced trade. It has been universally agreed that the free-floating Yuan would be significantly worth 15 cents.
Chinese economists feel that the impact has been over-exaggerated and particularly to America from Yuan revaluation. In particular, a stronger Yuan will not reduce the US’s trade deficit as there is a very smart segment of overlap between China and America Production and hence the US will not be able to replace Chinese imports. The consumer will end up paying more for imports from china or Vietnam and this would be like imposing a tax on US consumers.
The World Bank chief also disagrees with the US’s suggestion on China's currency rise a...
9 Pages (2250 words) Assignment

Communication Role at the Workplace

Internal communication in any organization has been found to play a significant role in regard to role achievement in any business venture. When the internal communication department closely works with the top management, it has been found that job satisfaction levels rise which in effect translates to higher individual and group output from the workers (HRM guide, 2009). It is the role of the internal communication department to ensure that the strategic organizational direction is passed on to all employees and followed as planned so as to guarantee the achievement of intended outcomes.
With the current developments towards globalization, knowledge availability has become more readily available and the economy has approache...
9 Pages (2250 words) Assignment

Bank Role in a Nations Economy

...Bank Role in a Nation’s Economy Banks are one of the oldest institutions in the world. In fact, some sources even consider the existence of banks some 2500 years ago. Banks then were actually storehouses for grains or crops often stored by farmers. In the ancient world, buildings such as temples became repository of important crops, grains, metals, gemstones and anything that has value in it. Later on, banks were established since commerce was greatly expanding. However, the most important concept about banks is when banks work effectively it affects macroeconomic stability since it is an integral part of a country’s financial system. It must be understood that banks work for itself, for the customers and for the economy...
5 Pages (1250 words) Research Paper

Evaluation of the Role of Human Networks in Knowledge Creation and Knowledge Sharing Within Patni

The extensive literature review has been undertaken to justify the actions of Patni and to appreciate its initiatives that enhance employee participation. The steps taken by this Indian IT giant in institutionalizing organizational learning have been discussed largely from the perspective of human resource management and it has also been discussed as to how knowledge generation takes place within the organization.

This report will aim at critically evaluating the role of human networks in knowledge creation and knowledge sharing within Patni Computer Systems Ltd. (Patni). For this purpose, an extensive literature review will be undertaken and various theories pertaining to human resource management will be made use of....
6 Pages (1500 words) Case Study

What Makes Role Play Essential in Kid's Development

Grown-ups habitually recognize, directly after meeting someone, what form of communication is about to take place, and what the limitations restricting the communication will be (Sutton-Smith & Ariel, 2002). Because role-play conversation takes place in a fantasy, staged world, it is less hampered by physical and social reality.
Between the ages of 5 and 7, children gain a broad array of social and cognitive abilities (Amsel & Byrnes, 2002). Psychologists have discovered that these are formative years for the growth of mind theories, the growth of the ability to construct and represent stories, the growth of social cognition, the growth of the personality, the growth of advanced fantasy play, and the growth of intersu...
9 Pages (2250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic The Role of Valuation of a Nations Currency to Another for FREE!

Contact Us