katumpa

Hi Iam new on this site and I am hoping I shall be of help on this site
I will be sitting for f7 and f9 at the june exams and iam currently having problems understanding foreign exchange and interest rates. I would appreciate any tips

katumpa

moeed

well foreign xchange methods involve one big basic principle ...** bank will buy foriegn currency at higher rate and will sell it at lower rate***
in the question u have to adjust rates acording to above princple for xample
if co is awaiting for reciepts in foreign currency then we will use higher rate and vice versa