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  • Composition of Foreign Exchange

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    vikas dhere
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    The document discusses key concepts related to international trade such as the combination of exports and imports in India, with major imports including fuels, chemicals and food grains, and exports including manufactured goods, textiles, gems and jewelry, and handicrafts. It also defines rupee convertibility as the freedom to convert the domestic currency into other internationally accepted currencies at market rates, distinguishing between current account and capital account convertibility. Finally, it defines the spot rate as the price quoted for immediate settlement of a commodity, security or currency based on its current value, and the market rate as the usual price charged for goods or services in a free market.

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    The document discusses key concepts related to international trade such as the combination of exports and imports in India, with major imports including fuels, chemicals and food grains, and exports including manufactured goods, textiles, gems and jewelry, and handicrafts. It also defines rupee convertibility as the freedom to convert the domestic currency into other internationally accepted currencies at market rates, distinguishing between current account and capital account convertibility. Finally, it defines the spot rate as the price quoted for immediate settlement of a commodity, security or currency based on its current value, and the market rate as the usual price charged for goods or services in a free market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    19 views6 pages

    Composition of Foreign Exchange

    Uploaded by

    vikas dhere
    The document discusses key concepts related to international trade such as the combination of exports and imports in India, with major imports including fuels, chemicals and food grains, and exports including manufactured goods, textiles, gems and jewelry, and handicrafts. It also defines rupee convertibility as the freedom to convert the domestic currency into other internationally accepted currencies at market rates, distinguishing between current account and capital account convertibility. Finally, it defines the spot rate as the price quoted for immediate settlement of a commodity, security or currency based on its current value, and the market rate as the usual price charged for goods or services in a free market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Dhere vikas krishna

    Mba 1st
    Introduction
    Combination of export import
    Major portion of imports india are in the areas of fuels,
    chemicals, food grains
    Exports are in the area of manufactured goods textiles
    gems and jewellery handicraft
    Rupee convertibility
    Refers to the freedom to convert the domestic currency
    into other internationally accepted currencies and vice
    versa at market determined rates of exchange.
    Two types
    1) current account convertibility
    2) capital account convertibility
    Spot rate
    The price quoted for immediate settlement on a
    commodity, a security or a currency.
    The spot rate also called spot price
    It is based on the value of an asset at the moment of
    quote
    Market rate
    Means usual price in the market
    The market rate for good or services is the usual price
    charged for them in a free market.

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