Dictionary


Currency Risk
The risk of an investments value changing because of currency exchange rates.
Currency Selection
Asset allocation in which the investor chooses among investments denominated in different currencies.
Currency Swap
The simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Current Account
Net flow of goods, services, and unilateral transactions (gifts) between countries. A country's balance of payments includes current account and capital account.
Current Ratio
The current assets of a company divided by its current liabilities. Indicator of short-term debt-paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company.