Financial Mathematics - Forex Arithmetic
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 71 rapid-fire Q&A cards.
Define 'Foreign Exchange' under FEMA 1999 Section 2(n).
Foreign currency and deposits, credits, drafts, traveller's cheques, letters of credit, bills payable in any foreign currency or drawn in INR but payable abroad.
What replaced the AD-bank authorization framework effective April 30, 2026?
Foreign Exchange Management (Authorised Persons) Regulations 2026; fresh authorizations only under AD Category-I, II, III.
Define Bid Rate in a two-way forex quote.
The price at which the quoting bank buys the base currency from the counterparty.
Define Offered Rate in a two-way forex quote.
The price at which the quoting bank sells the base currency to the counterparty.
What does a tight spread in forex quotation indicate?
Tight spread indicates a liquid, active market with low transaction costs.
India follows which quotation convention for forex rates post-August 2, 1993?
Direct quotation: foreign currency = X units of INR (except JPY, IDR, KRW, KES quoted per 100 units).
What is a cross rate in forex?
An indirectly derived exchange rate between two currencies through a third actively-quoted currency, typically USD.
Define Value Date in forex settlement.
The date on which actual exchange of funds occurs; both currency legs must settle same date.
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