TBill– Treasury bill – is a marketable security like a bond which is backed and issued by the US Government and has a maturity of up to one year. TBills are in denominations of $1000.
Transaction Risk
The risk which is linked to the possibility that the time delay between agreeing a contract and settling it gives rise to fluctuations in exchange rates.
Translation Exposure
A firm’s assets, liabilities, income and loans which are denominated in foreign currencies are exposed to changes in foreign exchange rates.
Translation Risk
Company’s that have foreign currencies on their balance sheet whether in assets or liabilities run a risk that there will be adverse changes in foreign exchange rates.
Treasury Note – A treasury note is a marketable security issued by the US Government and which has a fixed rate of interest and a maturity between one and ten years.
Two Way Quote
A quoted price which shows both the bid and offer side of the price quote thus informing traders the price at which they can sell or buy a particular investment. The spread between the bid and offer sides of the quote also indicates the liquidity of the market. The narrower the spread the more liquid is the market.
Unemployment Rate
The part of the labor force of a country that is willing to work but at the moment is unemployed.
Universal Currency Converter
A piece of on-line software that automatically converts from one currency to another using current real time exchange rates.
Unsterilized Foreign Exchange Intervention
A passive attempt by a country’s central bank or monetary authorities to influence the money supply by not buying or selling domestic or foreign currency.
Weak Dollar
A situation where the US dollar buys fewer amounts of a foreign currency trading and usually implies a weaker economy in the United States.