What Affects Currency Rates

Have you ever wonder why the value of currencies give on changing time to time .currencys are traded at forex market. there are many factors that contibute to this changes.These fundermantals include:, 1.POLITICAL FACTORS; Political stability of any country determine the rates at which its currency will be be traded.For example the currency of zimbabwe went down because of of political instability. 2.DATA REPORTS; reports that are released by various bodies within a country or outside determine the way a currency will be traded.these bodies include such as World Bank, IMF, Central Bank any others.these report include projected economic growth. 3.INTEREST RATES LEVELS;the interest rates determine the value in which the currency will be traded at.4;MONETARY POLICIES; monetary policies that central bank of any country will greately influence the direction on which the currency will be exchanged.5; INTERNATIONAL TRADE FLOW; countries trade policies with other countries influence wich direction in which will be going at.

Determinant of short-time cash investments

Investing in cash for a short time is determined by many factors. you should understand factors before you decide on your investment plans.these factors are:, 1.INTEREST RATES Generally short time cash investment contain high interest rates compared to the long time investment.unless the project you have decided to start will yield a good return then you should be careful before you decide to borrow. 2.OPTIONS there are many alternatives that will facilitate your short time investment,it only you to choose the best option after understanding each. This options include (a) money markets (b) savings accounts (c) short time CDs 3. SAFETY safety of your cash investment should be major concern for you.where you decide to place your money be the place where your assured to access it in future or when you need it.4. AVOID PENALTIES before you decide to invest in any place please read and understand the terms and condition that contained in the agreement.Breaking of the rules placed on the investment agreement will cost you alot. Talk with your lawyer if are not getting it right.

Consolidated balance sheet

The balance sheet of a group providing the financial information contained in the individual financial statement of the parent company of the group and its subsidiary

Computer-to-interface(CTCI)

It is computer system which allows the simultaneous reporting of trade and the recording of the same trade on the securities house`s own data store

Computer assisted trading CAT

The use of computers by brokers and traders on a market such as stock exchange to facilitate trading by displaying prices recording deals

Cumulative preference shares

A type of preference share that entitles the owner to receive and dividends not paid in previous

Current ratio [working -capital ratio]

The ratio of the current assets of a company to the current liabilities and used to test liguidity

what is current assets

Assets that form,part of the working capital of a business and are turned over frequently in the caurse of trade.

What is current liabilities

Amount owed by a business to other organization and individuals that should be paid within one year from the balance sheet date

Certificate of Deposits(CD)

A negotiable certificate issued by a bank in return for a term deposits of upto five years