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분야
pptxIntroduction
The Functions of the Foreign Exchange
Part 2
The Nature of the Foreign Exchange Market
Prices and Exchange Rates (1)
Part 3
Prices and Exchange Rates (2)
Foreign Exchange Market
a market for converting the currency of one country into that of another country
Exchange Rate
the rate at which one
currency is converted
into another
The Functions of the Foreign Exchange Market
Currency Conversion
To convert the currency of one country
into that of another country
Insuring against Foreign Exchange Risk
To provide insurance against foreign exchange risk, which is the possibility that unpredicted changes in future exchange rates will hurt the profitability of business.
The Functions of the Foreign Exchange Market
Currency Conversion
To convert the currency of one country
into that of another country
Ex) $1=₩1,100
Tourists are minor participants
International businesses are major ones
