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Which of these describes the process of exchanging currency between three banks in order to gain a profit from the exchange rate of each type of currency?
Wiki User
∙ 8y ago
triangular arbitrage
Wiki User
∙ 8y ago
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What is a problem with exchanging currency?
There is no particular problem with exchanging currency. The problem is finding somewhere which will exchange the currency you have for the currency you want. If you are in a country, the easiest way is to go to the nearest bank cash machine and use your bank card (not credit card). This will dispense the local currency, and your bank will be charged that amount plus a small service charge. The currency conversion is done by your bank. Which exchange rate is used and whether you are ripped off is between your bank and you. If you want to change actual money, there are a number of places you can use: Exchanging physical money will nearly always be at a worse rate than using a cash machine. Always check the exchange rate before committing yourself to the transaction. - A "Bureau de Change". These are found at airports and in some tourist areas. - At a bank. You can do this either at a bank before you leave, or at a bank in the destination country after you arrive. If you do it at your bank they may have to order the currency.
Explain the difference between indirect and direct exchange rates?
The difference between indirect and direct exchange rates is that an indirect exchange rate is the number of foreign currency units that may be obtained for one local currency unit and a direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar).
What is currency exchange rate?
currency exchange rate means values between two other countries currency. For example, the value of indian rupee againts one US dollar is 60.64
Why is currency called the medium of exchange?
Currency is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. In modern economies the medium of exchange is currency. Ref: alpari.com/en/beginner/glossary/
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.
What is the term for a system for exchanging currencies between nation?
Foreign Exchange
What is a term that describes a standard for exchanging documents between computers?
EDI
What do you mean by foreign exchange?
Foreign Exchange is Exchange between two currency.
What is a problem with exchanging currency?
There is no particular problem with exchanging currency. The problem is finding somewhere which will exchange the currency you have for the currency you want. If you are in a country, the easiest way is to go to the nearest bank cash machine and use your bank card (not credit card). This will dispense the local currency, and your bank will be charged that amount plus a small service charge. The currency conversion is done by your bank. Which exchange rate is used and whether you are ripped off is between your bank and you. If you want to change actual money, there are a number of places you can use: Exchanging physical money will nearly always be at a worse rate than using a cash machine. Always check the exchange rate before committing yourself to the transaction. - A "Bureau de Change". These are found at airports and in some tourist areas. - At a bank. You can do this either at a bank before you leave, or at a bank in the destination country after you arrive. If you do it at your bank they may have to order the currency.
What is the difference between returning and exchanging something?
the difference between reterning and exchanging is when you exchange you return for something else as in if i bought new shoes i would exchange them for yellow shoes. and reterning is as if i bought red shoes and they didn't fit so i return them.
Explain the difference between indirect and direct exchange rates?
The difference between indirect and direct exchange rates is that an indirect exchange rate is the number of foreign currency units that may be obtained for one local currency unit and a direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar).
What is currency exchange rate?
currency exchange rate means values between two other countries currency. For example, the value of indian rupee againts one US dollar is 60.64
What is the differences between stock market and currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
What is the difference between the stock market and the currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
What is anything that slows down or prevents trade between countries?
currency exchange.
Why is currency called medium of exchange?
Currency is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. In modern economies the medium of exchange is currency. Ref: alpari.com/en/beginner/glossary/
Why is currency called the medium of exchange?
Currency is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. In modern economies the medium of exchange is currency. Ref: alpari.com/en/beginner/glossary/
