Question

by using practical examples what are the roles and uses of financial intermediaries with the emphasis on currency swaps (NAD/USD) with comparative advantage argument?

Answer 1

Amswer :-

A country has a relative advantage in producing a good if its opportunity cost of producing that good is not as much as that of its trading accomplice.

Budgetary mediators who manage Currency Swaps (NAD/USD) are called swap seller.

Currency swap alludes to the swap of one currency (NAD) to another currency (USD) in the future market at pre concurred rate in future.

A swap vendor accept an occupation like that of a remote exchange or government bond seller. The swap vendor is typically a laborer of a bank, securities association or othermonetary establishment (or an assistant of one of these associations) The swap seller is a counterparty to swap trades with retail clients, and accept a representative employment between retail clients.

The swap vendor also trades on an interbank premise with other swap sellers. Interbank exchanging assests with working up publicize liquidity and market costs for various classes of swaps.

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