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November 17, 2020 at 10:23 pm
sir the smaller units mentioned would always be of the first currency? If not then it would be clearly mentioned whether the small currency units belong to 1st currency or 2nd? Or it would be left on us to conjecture?
Many thanks as always:))
John Moffat says
November 18, 2020 at 8:40 am
The first rate is the rate to use if the company is buying the first mentioned currency. The second rate is the rate to use if the company is selling the first mentioned currency.
November 1, 2020 at 9:05 am
great lecture! so in conclusion, we applied the concept of buy the first currency at low rate and sell it at high rate. That is because we are seeing it on the bank perspective right? and at the same time from the concept, in company perspective, co. always pay at high value and receive at low value. Is my understanding on this correct?
November 1, 2020 at 3:57 pm
Yes – if the company is buying currency they pay the higher amount, and if they are selling currency they receive the lower amount 🙂
November 1, 2020 at 5:54 pm
thank you so much! 🙂
August 12, 2020 at 2:41 pm
After watching this lecture I am now able to understand what I have been struggling to understand
August 13, 2020 at 7:48 am
November 28, 2019 at 7:46 am
In simple, We have to pay always higher and receive always lower amount, if we translate into Exchange rates.
Am I correct John?
November 28, 2019 at 8:48 am
December 4, 2018 at 6:00 pm
I thought we buy currency at a higher rate and sell currency at a lower rate ? If we buy at a higher rate then it’s meant to be divided by 1.4970?
August 14, 2019 at 5:58 pm
I learnt that banks buy low and sell high . Thats how they make a profit
August 15, 2019 at 7:21 am
That is how they make a profit as I explain in the lectures. However which of the two rates we use depends on which way round we are converting (i.e. which of the two currencies is being converted into the other currency).
I explain how to decide which rate to use in my lectures (and it is always whichever rate is worse for the company because, again, it is the bank that makes the profit).
October 13, 2018 at 11:08 am
Thanks it was very helpful lecture..
October 13, 2018 at 12:02 pm
Thank you for your comment 🙂
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