Foreign exchange

The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

The primary purpose of the foreign exchange market is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import European goods and pay Euros, even though the business's income is in US dollars. It also supports speculation, and facilitates the in which investors borrow low-yielding currencies and lend (invest in) high-yielding currencies, and which (it has been claimed) may lead to loss of competitiveness in some countries.

In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remainedas per the Bretton Woods system.

more information for "wiki"

Types of financial markets

The financial markets can be divided into different subtypes:

• • Stock markets, which provide financing through the issuance of shares and enable the subsequent trading thereof.
  • Bond markets, which provide financing through the issuance and enable the subsequent trading thereof.
• Commodity markets, which facilitate the trading of commodities.
• Money markets, which provide short term debt financing and investment.
• Derivatives markets, which provide instruments for the management financial risk.
• Futures markets, which provide standardized for trading products at some future date; se
• Insurance markets, which facilitate the redistribution of various risks.
• Foreign exchange markets, which facilitate the trading of foreign exchange.

The consist of Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold or buy existing securities.

more information for "wiki"

Financial market

In economics, a financial market is a mechanism that allows people to buy and sell financial (such as stocks and bonds), (such as precious metals or agricultural goods), and other items of value at low transaction costs and at prices that reflect the efficient-market hypothesis .

Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy.

In finance, financial markets facilitate:

• The raising of capital (in the capital markets)
• The transfer (in the derivatives markets)
• International trade(in the currency markets )

more information for "wiki"

Financial risk management

Financial risk management is the practice of creating economic value by using financial instruments to manage exposure , particularly credit risk and market risk. Other types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc. Similar to general management, financial risk management requires identifying its sources, measuring it, and plans to address them. Financial risk management can be qualitative and quantitative. As a specialization of management, financial risk management focuses on when and how to using financial instruments to manage costly exposures to risk.

In the banking sector worldwide, the are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks.

The concepts of financial risk management change dramatically in the international realm. are faced with many different obstacles in overcoming these challenges. Research by many, including has started to disclose much of the decisions and impacts firms must make when operating in many countries. has specifically identified three kinds of foreign exchange exposure for various future time horizons, transactions exposure, accounting exposure, and economic exposure

more information for "wiki"

Credit

Credit insurance repays some or all of a when certain things loan happen to the borrower such .

• insures the lender against default by the borrower. Mortgage insurance is a form of credit insurance, although the name credit insurance more often is used to refer to policies that cover other kinds of debt.
• Many credit cards offer payment protection plans which are a form of credit insurance.

The defendant to a cause of action must file an "Answer" to the complaint in which the claims can be admitted, denied, or insufficient information to form a response. The answer may also contain counterclaims in which the "Counterclaim Plaintiff" states its own causes of action. Finally, the answer may contain . Most defenses must be raised at the first possible opportunity either in the answer or by motion or are deemed waived. A few defenses, in particular a court's lack of subject matter , need not be plead and may be raised at any time.

more information for "wiki"

Claims

Claims and loss handling is the materialized utility of insurance; it is the actual "product" paid for, though one hopes it will never need to be used. Claims may be filed by insureds directly with the insurer or through brokers or agents. The insurer may require that the claim be filed on its own proprietary forms, or may accept claims on a standard industry form such as those produced .

Insurance company claims departments employ a large number of supported by a staff of and . Incoming claims are classified based on severity and are assigned to adjusters whose settlement authority varies with their knowledge and experience. The adjuster undertakes a thorough investigation of each claim, usually in close cooperation with the insured, determines if coverage is available under the terms of the insurance contract, and if so, the reasonable monetary value of the claim, and authorizes payment. Adjusting liability insurance claims is particularly difficult because there is a third party involved, the plaintiff, who is under no contractual obligation to cooperate with the insurer and may in fact regard the insurer. The adjuster must obtain legal counsel for the insured (either inside "house" counsel or outside "panel" counsel), monitor litigation that may take years to complete, and appear in person or over the telephone with settlement authority at a mandatory settlement conference when requested by the judge.

If a claims adjuster suspects underinsurance, the may come into play to limit the insurance company's exposure.

In managing the claims handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. As part of this balancing act are a major business risk that must be managed and overcome. Disputes between insurers and insureds over the validity of claims or claims handling practices occasionally escalate into litigation; see insurance bad faith.

more information for "wiki"

Insurance

In and , insurance is a form of risk management primarily used to against the of a contingent, loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. , the practice and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the case of a large, possibly devastating loss. The insured receives a called the insurance policy which details the conditions and circumstances under which the insured will be compensated.

more information for "wiki"