A multinational corporation with subsidiaries in multiple countries is exposed to significant currency risk due to fluctuations in exchange rates. The company's CFO is exploring financial derivatives to mitigate this risk and ensure predictable cash flows. The CFO is particularly interested in a derivative that involves the exchange of principal and interest payments in different currencies, effectively locking in exchange rates and mitigating the impact of currency fluctuations on the company's cash flows. Which specific type of derivative would best suit the CFO's needs?
Currency swaps involve the exchange of principal and interest payments in different currencies, allowing companies to effectively lock in exchange rates and mitigate the impact of currency fluctuations on their cash flows.
To ensure fair lending, the Reserve Bank of India (RBI) has prohibited lenders from compounding penal interest arising from loan defaults with future re...
Consider the following statements about Project Promoting Regular Assisted Migration for Youth and Skilled Professionals (PRAYAS):
1. ...
What is the aim of the integration between India's UPI and Nepal's NPI as per the pact signed by RBI and Nepal Rastra Bank?
Who is the author of the book ‘Delhi University : Celebrating 100 years of Glorious Years’?
Which company had launched Mahila Money Prepaid Card to help women entrepreneurs?
Which two great footballers, who were members of the gold medal winning team of 1962 Asian Games, passed away in 2020?
Consider the following statements with respect to equity FDI flow in India-
I.According to the data provided by the Reserve Bank of India, the eq...
Who has been awarded the special jury award for 'Kantara' at the 54th International Film Festival of India (IFFI)?
Consider the following statements regarding Global Hunger Index 2023-
I.India's ranking in the Global Hunger Index 2023 fell to 111 out of 125 co...
What is the primary objective of the Multinational Military Exercise KHAAN QUEST in which the Indian Army is participating?