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If the forward rate increases, it indicates that the currency will depreciate in the future. This is because a higher forward rate implies that the currency will be worth less in the future compared to the present.

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1y ago

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A catalyst does not affect the value of the equilibrium constant (Keq) of a reaction. The presence of a catalyst increases the rate of both the forward and reverse reactions equally, allowing the system to reach equilibrium more quickly but does not change the final equilibrium composition.


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Related Questions

Currencies of countries with high inflation rates tend to have forward discounts.why?

This question is based on the concept of interest rate parity between two countries. A country with a high inflation rate will have high interest rates as compared to other countries. this will make it's currency to depreciate against its trading partners hence the forward discount.


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the swap is basically purchasing foreign currency in the spot market and selling at forward or purchasing at forward and selling also at forward swap in purchasing in spot rate and selling at forward and swap out is the opposit of it


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Dear Anderson, I would like to ask you about the status of this information, it seems that our BU is worried about product´s supply. I am looking forward for you!


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How do I depreciate of appliances?

I've provided a link that gives detail on the "how to" of depreciation....I'm sure your looking forward to reading that! First...consider if you can depreciate...it must be certain types of property held for productive use (basically to produce income). So a refrigerator in a rental property may be depreciated...the one in your residence can't be. But especially because of the accounting and such, if you have small amounts of property to depreciate...now under 125K or so a year...under Sect 179 you can just expense them. Generally a great benefit and something you really should look at. The linked Publication has info on this too.


Advantages of operating in forward market?

Forward market allows the dealers to concentrate on their core line of business because they don't bother themselves with the risk of currency exchange. There is no premium paid upfront on forward contract as compared to futures and options.


What is the formula for calculating forward FX points in AUDUSD and what rates do you use for the AUD and USD interest rates?

To calculate a forward FX rate, use the formula; Forward rate = Spot rate*(1 + r1)^n ------------- (1 + r2)^n where r1 is the relevent interest rate for currency 1, r2 is the relevent interest rate for currency 2, n is the period in question In terms of the interest rate to be used, it should be the risk free rate for the period in wuestion for each currency.


How much is 600 Australian dollars worth in Italian currency?

type currency converter in google. straight forward to find out . Im not giving u the number amount because its always flunctuating. :)