GMS 724 Chapter Notes - Chapter 8: Profit Margin, Currency Pair, Reserve Currency

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Lori Anne Heckbert

Document Summary

There is a fundamental difference between making a payment in the domestic market and making one abroad: in a domestic transaction, companies use only one currency, in a foreign transaction, they can use two or more. Foreign exchange: money denominated in the currency of another nation or group of nations. Foreign-exchange market: the market in which such transactions take place: can be in the form of cash, funds available on credit and debit cards, traveler"s checks, bank deposits, or other short-term claims. Exchange rate: the price of a currency; the number of units of one currency that buy one unit of another currency. Bank of international settlements (bis): a central banking institution in. Basel, switzerland, owned and controlled by 56 member central banks, divides the market into 3 major categories: reporting dealers (money centre banks), 39%: financial institutions that actively participate in local and global foreign exchange and derivative markets. Deutsche bank, barclays capital, ubs, citibank, jp.