CFA Level 2 – LOS Changes 2012 – 2013 Topic Ethics Ethics Ethics LOS 1.1.a describe the six components of the Code of Ethics and the seven Standards of Professional Conduct 1.1.b explain the ethical responsibilities required by the Code and Standards‚ including the multiple sub-sections of each standard. 1.2.a demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying
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market b. Debt leverage 2. Forex market a. Increase the value of domestic currency b. Exchange rate fluctuations III. Conclusion. I. Introduction 1. Derivative Market The derivatives market is the financial market for derivatives‚ financial instruments like futures contracts or options‚ which are derived from other forms of assets. The market can be divided into two‚ that for exchange-traded derivatives and that for over-the-counter derivatives. The legal nature of these
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"Chinese Foreign Reserves to Exceed $1 Trillion" The Times‚ March 29‚ 2006‚ Guijun L. and Schramm R. "China ’s Progression toward Currency Convertibility‚" The Chinese Economy‚ V37: (2004)‚ 78-100. Lu D. "China ’s Capability to Control its Exchange Rate‚" in China Economic Review‚ V15: (2004)‚ 343-347. Ping L. "Challenges for China ’s Banking Sector and Policy Responses‚" China Banking Regulatory Commission‚ November 14-16‚ 2003 Renminbi‚" China Economic Review‚ V16‚ (2005): 103–117. Tung C
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12: INTERNATIONAL TRADE AND EXCHANGE International trade - is the exchange of goods and services between countries. Export - A product that is sold to the global market Import - A product that is bought from the global market Comparative Advantage – a lower relative or comparative opportunity cost than that of another person‚ producer or country. Terms of Trade- the rate at which units of one product can be exchanged for units of another product. Foreign Exchange Market – a market at which
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or futures contract in which counterparties settle the difference between the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount. It is used in various markets such as foreign exchange and commodities. NDFs are prevalent in some countries where forward FX trading has been banned by the government (usually as a means to prevent exchange rate volatility Market The NDF market is an over-the-counter market. NDFs began to trade actively in the 1990s. NDF
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1) In what way(s) is Tiffany exposed to exchange-rate risk subsequent to its new distribution agreement with Mitsukoshi? How serious are these risks? . 1) Transaction Exposure‚ the probability of loss associated with a business transaction denominated in a foreign currency‚ due to changes in the exchange rate . 2) Operating exposure is the degree of risk that a company is exposed to when there is some type of change in varying currency values that are relevant to the operation of the company.
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face when conducting business in another country. * Country risks refer to the political and financial risks of conducting business in a particular foreign country. Country risks include foreign exchange risk‚ political risk‚ and cultural risk. * 1.4 What is political risk? * Political risk is the risk that a sovereign host government will unexpectedly
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International Journal of Global Business‚ 7 (1)‚ 59-76‚ June 2014 59 Examining the Effects of Currency Depreciation on Trade Balance in Selected Asian Economies Alemu‚ Aye Mengistu Assistant Professor‚ SolBridge International School of Business‚ Daejeon‚ South Korea. ayem2011@solbridge.ac.kr Jin-sang‚ Lee Specialist Professor‚ Duksung Women’s University‚ Seoul‚ South Korea. jinslee0209@duksung.ac.kr Abstract The aim of this study is to investigate how depreciation could affect the export
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including political and economic factors that affect central banking decisions regarding interest rates. Interest rate risk along with inflationary risk is two economic factors that affect a firm’s degree of transaction exposure (Shapiro‚ 2010). These risks combine what are known as exogenous forces that influence the currency risk for firms operating overseas or hedging against net receivables. Interest Rates Transaction exposure can be reduced by knowing the potential for currency risk in an economy
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Investigation into foreign exchange losses at the National Australia Bank 12 March 2004 Mr David Krasnostein Chief Legal Counsel National Australia Bank Limited Level 24 500 Bourke Street Melbourne Vic 3000 12 March 2004 Dear Mr Krasnostein Report on investigation into foreign currency losses Please find attached PwC’s report resulting from our investigation into foreign exchange losses at the National Australia Bank. Your faithfully PricewaterhouseCoopers Craig D Hamer Partner P G Rivett
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