Demystifying Forex: Rates, Quoting, Demand and Supply

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Demystifying Forex: Rates, Quoting, Demand and Supply, Meaning of Forex rate, Direct & Indirect Forex rate, Sources of demand and supply of forex.

  • What is meant by Foreign exchange rate?
  • What does foreign exchange rate tell us?
  • Exchange rates are constantly changing based on various factors. What are those factors?
  • Why are forex rates always quoted in pairs?
  • What are the currency options for importers?
  • What are the two main ways in which foreign exchange rate can be quoted?
  • What is meant by direct quote of foreign exchange rate?
  • What is indirect quote of exchange rate?
  • What are the various sources of demand for foreign exchange?
  • Whether a poor individual living from hand to mouth also plays an important role in foreign exchange demand?
  • How speculative trading acts as source of demand for foreign exchange?
  • What is meant by hedging?
  • How imports are concerned with foreign exchange demand?
  • The demand curve of foreign exchange is downward sloping. Why?
  • The demand curve of foreign exchange is in the form of a straight line or somewhat curving. Comment.
  • What are the diverse Sources of Foreign Exchange Supply?
  • How workers’ remittances are a source of supply of foreign exchange?
  • When domestic entities sell their assets in foreign country, what is the effect on foreign exchange supply?
  • How exports also act as source of supply of foreign exchange?
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