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How can changes in foreign exchange rates affect the profitability of financ?
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How can a change in interest rates affect the profitability of financial institutions?
A change in interest rates affects the cost of acquiring funds for financial institution as well as changes the income on assets such as loans, both of which affect profits. In addition, changes in interest rates affect the price of assets such as stock and bonds that the financial institution owns which can lead to profits or losses.
How location and layout decision affect performance of a business?
We must know about various factors related to performance of business like Profitability, Output, Productivity, Optimal utilization of resources, Cost curtailment, Growth Expansion and Customber satisfaction etc. Location and layout decision definitely affect over the performance of a foreign bank branch.
How do limitations on domestic geographic diversification affect an financial institution profitability?
Any increase in profit due to economies of scale is lost on increased risky behavior from the company. As companies expand they inturpret risk differently, what used to be a risky endevor, "morgaged backed securities" now seems to have a smaller impact of risk compared to the larger size of the company. The only limitations on domestic geographic diversification that affects profitability are the ones managment creates though changes in policy due to increased market share.
What are the objectives of credit control by central banks?
The central bank makes efforts to control the expansion or contraction of credit in order to keep it at the required level with a view to achieving the following ends. 1. To save Gold Reserves: The central bank adopts various measures of credit control to safe guard the gold reserves against internal and external drains. 2. To achieve stability in the Price level: Frequently changes in prices adversely affect the economy. Inflationary and deflationary trends need to be prevented. This can be achieved by adopting a judicious of credit control. 3. To achieve stability in the Foreign Exchange Rate: Another objective of credit control is to achieve the stability of foreign exchange rate. If the foreign exchange rate is stabilized, it indicates the stable economic conditions of the country. 4. To meet Business Needs: According to Burgess, one of the important objectives of credit control is the "Adjustment of the volume of credit to the volume of Business" credit is needed to meet the requirements of trade an industry. So by controlling credit central bank can meet the requirements of business.
What would happen to the US standard of living if people lost faith in the safety of your financial institution?
it will affect their stock exchange market,devaluation of currency,
How does the foreign exchange affect the international business?
i dont no
What is a current issue involving foreign exchange?
A current issue involving foreign exchange is the impact of fluctuating exchange rates on international trade and investment. Fluctuations in exchange rates can affect the cost of imports and exports, making it challenging for businesses to plan and forecast their financials. Additionally, exchange rate volatility can create uncertainties for investors, affecting their decisions regarding foreign investment.
How does exchange rate fluctuation affect the profitability of company engaged in import export?
The import export business relies on exchange rate. Fluctuations can greatly increase profits, or wipe them out altogether. This is what led to the establishment of the EURO.
How does exchange rates depreciation affect the south African economy?
Exchange rates depreciation affect the south African economy because it leads to changes in inflation in the country' economy .
What is the significance of foreign exchange rate risk and how can this risk be mitigated?
Foreign exchange risk is the level of uncertainty that a company must manage for changes in foreign exchange rates, that will adversely affect the money the company receives for goods and services over a period of time. For example, a company sells goods to a foreign company. They ship the goods today, but will not receive payment for several days, weeks or months. During this grace period, the exchange rates fluctuate. At the time of settlement, when the foreign company pays the domestic company for the goods, the rates may have traveled to a level that is less than what the company contemplated. As a result, the company may suffer a loss or the profits may erode.
How does a country balance of payments affect the value of its currency?
can cause fluctuations in the exchange rate between its currency and foreign currencies.
How can a change in interest rates affect the profitability of financial institutions?
A change in interest rates affects the cost of acquiring funds for financial institution as well as changes the income on assets such as loans, both of which affect profits. In addition, changes in interest rates affect the price of assets such as stock and bonds that the financial institution owns which can lead to profits or losses.
How does land affect the environment?
reduces biodiversity, increase heat changes hydrology loss of trees increase in foreign species.
How does urban land affect the environment?
reduces biodiversity, increase heat changes hydrology loss of trees increase in foreign species.
What exactly is international finance?
"International finance is part of the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade. There are many books and web sites that will explain a certain exchange rate."
What two ratios measure factors that affect profitability?
what tw ratios measure factors
Explain how the general environment and the industry environment are highly related how can such relationship affect the profitability of a firm or industry?
explain how the general environment and industry environment are highly related. How can such interrelationships affect the profitability of a firm or industry?
