WANT TO TAKE PART IN FOREX TRADING?, SMART ZOMBI'S.

If you want to take part in the FOREX trading then you must know about it.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded. Currency Trading is the world's largest market consisting of almost $3.5 trillion in daily volume. All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency. The first currency of a currency pair is called the "base currency," while the second currency is called the “counter currency.” The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency. Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold. The opposite is true, when the sale of a currency pair takes place. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

PRIMARY FOREIGN EXCHANGE MARKET, SMART ZOMBI'S.

Markets are interrelated, and a problem in one market can have its source in a different market. This finding is a starting point for macroeconomics. To limit the number of markets they must explore, economists conventionally lump together or aggregate the vast number of markets in a modern economy into only four:
1. markets for goods and services,
2. financial assets,
3. money balances,
4. resources.

The foreign exchange market provides an excellent illustration of how financial markets can transmit disturbances. The market is usually considered to be an efficient market, not subject to runaway speculative binges. The heart of the market is the trading by a number of very large banks. A trade worth a million dollars is very small in this market, but it is the prices of these very large bank transactions that newspapers report when they publish exchange rates. When you deal in smaller amounts when you travel to Thailand, you will get less favorable prices.

SINGULARITY OF FOREIGN EXCHANGE. SMART ZOMBI'S.

Wow the good market and the best ever. Foreign exchange market is one of the best market in the world. It has its own beauty to be oneness. It is amazing and different from other markets because of its incomparable facts like,

1. It's huge trading aggregate,
2. It's geological scattering,
3. It is the supreme liquidity market,
4. It is 24 hours trading market except on these days (from 22:00 UTC on Sunday until 22:00 UTC Friday),
5. The exchange rates get changed due to its multiple factors,
6. The use of leverage.

(Source: wikipedia.)

FOREIG EXCHNAGE MARKET IN TERMS OF SUPPLY AND DEMAND, SMART ZOMBI'S.

The market for foreign exchange can be analyzed in terms of supply and demand. Americans demand foreign money (and supply dollars) when they buy things abroad, such as vacations, goods, services, factories, and financial assets. Foreigners supply foreign currency (and demand dollars) when they buy things here, such as vacations, goods, services, factories, and financial assets. Although when you buy a Japanese camera, you do not deal in the foreign exchange market, someone did in the process of bringing the camera to you. It may have been the American importer, who would have sold dollars to buy yen, and then used the yen to buy the camera. Or it may have been the Japanese exporter, who sold cameras for dollars and then sold the dollars for yen. In either case, dollars were supplied to the foreign exchange market and yen were demanded.

EXCHANGE TRADE CREATES BUSINESS, SMART ZOMBI'S.

Everyone knows that the national currency of any country is only useful in its boundary. But when we have to do business out side the country then the native currency becomes useless. At this stage we need the currency of that country with which we are doing trade.

In the market for foreign exchange (forex), people trade one country's money for another's. If, for example, you decide to travel to Thailand, you will need to buy some bahts, the currency of Thailand, either before you go or once you get there. In your transaction, you will supply dollars to the foreign exchange market and demand bahts.

FOREX FUNDAMENTAL ANALYSIS, SMART ZOMBI'S.

If you think of the markets as a big clock, fundamentals are the gears and springs that move the hands around the face. Anyone can tell you what time it is now, but the fundamentalist knows about the inner workings that move the clock's hands towards times (or prices) in the future.

Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use; bottom up analysis and top down analysis. The term is used to distinguish such analysis from other types of investment analysis, such as quantitative analysis and technical analysis. Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts.
There are several possible objectives like,

1. To conduct a company stock valuation and predict its probable price evolution.
2. To make a projection on its business performance.
3. To evaluate its management and make internal business decisions.
4. To calculate its credit risk.

FOREX TECHNICAL ANALYSIS, SMART ZOMBI'S.

Technical analysis attempts to forecast future price movements by examining past market data.

The principles of technical analysis derive from the observation of financial markets over hundreds of years. The oldest known example of technical analysis was a method developed by Homma Munehisa during early 18th century which evolved into the use of candlestick techniques, and is today a main charting tool

Technical analysis is a security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume.In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument. Technical analysts may employ models and trading rules based on price and volume transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, cycles or, classically, through recognition of chart patterns.

Technical analysts seek to identify price patterns and trends in financial markets and attempt to exploit those patterns. While technicians use various methods and tools, the study of price charts is primary.

BEGINER BASIC CONCEPTS OF FOREX, SMART ZOMBI'S.

I f you are a beginner in FOREX trading, this is the place to start. The following articles will help you gain an understanding of the FOREX market and how it works.

(i) THE WAY OF DOING FOREX TRADING.

FOREX trading is typically done through a broker or market maker. As a FOREX trader you can choose a currency pair that you feel is going to change in value and place a trade accordingly. For example, if you had purchased 1,000 Euros in January of 2005, it would have cost you around $1,200 USD. Throughout 2005 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to close your trade at that point, you would have made $10

0.

FOREX trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank M

arket to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.

(ii) CURRENCIES EXCHANGE COUNTRIES:

There are m

any countries in world; so results different currency pairs. Among all of them, these are the popular in currency trading:

EUR/USD, USD/JPY, GBP/USD, USD/CHF, EUR/CHF, AUD/USD, USD/CAD, NZD/USD, EUR/GBP, EUR/JPY, GBP/JPY, CHF/JPY, GBP/CHF, EUR/AUD, EUR/CAD, AUD/CAD, AUD/JPY, CAD/JPY, NZD/JPY, GBP/AUD, AUD/NZD

Five Majo

r Currencies are:

U.S dollar - The United States dollar is the world's main currency – an universal measure to evaluate any other currency traded on FOREX.

Euro- Euro was designed to become the premier currency in trading by simply being quoted in American terms. Like the U.S. dollar, the euro has a strong international presence stemming from members of the European Monetary Union.

Japanese Yen- The Japanese yen is the third most traded currency in the world; it has a much smaller international presence than the U.S. dollar or the euro. The yen is very liquid around the world, practic

ally around the clock.

British Pound - Until the end of World War II, the pound was the currency of referen

ce. The currency is heavily traded against the euro and the U.S. dollar, but has a spotty presence against other currencies.After the introduction of the euro, Bank of England is attempting to bring the high

U.K. rates closer to the lower rates in the euro zone.

Swiss Franc - Swiss franc is the only currency of a major European country that belongs neither to the European Monetary Union nor to the G-7 countries. Although the Swiss economy is relatively small, the Swiss franc is one of the four major currencies, closely resembling the strength and quality of the Swiss economy and finance.

To have a well focusing, you have to concentrate on less than 5 currency pairs( prefer

red the U.S. cross-currency pairs.)

Some traders

see FOREX as a business, and some see it as a fortune. And even some traders think forex is an art. But anyway, its highly recommended to use pivot system in your trading plan or else you are trading blind.

(ii) Forex Quotes

Reading a foreign exchange quote is simple if you remember two things:

1. The first currency listed is the base currency
2. The value of the base currency is always 1.

As the centerpiece of the FOREX market, the US dollar is usually considered the base currency for quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency.

When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.

(iv) Leverage & Margin

Leverage trading, or trading on margin, means you aren't required to put up the full value of the position.

Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.

(v) Swap Rates

Another important component to remember when trading forex is the SWAP (Also known as rollover) rates. As mentioned before when trading a currency pair you are borrowing the bottom pair and purchasing and holding the top pair. So if you are trading the GBP/JPY you are actually purchasing the GBP and borrowing the Yen.

As you know, when holding a currency in an account you are receiving interest and when borrowing a currency you are paying interest. Because forex trading is highly leveraged and you are theoretically controlling large amounts of money, the SWAP rates accumulate and need to be accounted for in your trading. Typically forex dealers either pay or charge you the SWAP rate depending on the position you are holding.

Let's look at the GBP/JPY example. When taking a position in the GBP/JPY you are borrowing the Japanese Yen at a low interest rate and using it to purchase the Sterling which pays a higher interest; so when you are long this pair you will receive daily interest from your forex dealer and when you are short you will be paying daily interest. The forex dealer will always charge a little more than they pay when it comes to rollover rates in exchange for facilitating the process

(source: Taken from forex.com , learnforexsecret.com......)

BALANCE OF PAYMENTS, SMART ZOMBI'S.

In Economics, the Balance of payments (BOP) measures the payments that flow between any individual countryand all other countries. It is used to summarize all international economic transactions for that country during a specific time period, usually a year. The BOP is determined by the country's exports and imports of goods, services, and financial capital, as well as financial transfer. It reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits) Balance of payments is one of the major indicators of a country's status in international trade, with net capital outflow.

BALANCE OF TRADE, SMART ZOMBI'S.

The balance of trade forms part of the current account which includes other transactions such as income from the international investment position as well as international aid. If the current account is in surplus, the country's net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position.

The trade balance is identical to the difference between a country's output and its domestic demand (the difference between what goods a country produces and how many goods it buys from abroad; this does not include money re-spent on foreign stocks, nor does it factor the concept of importing goods to produce for the domestic market).

Measuring the balance of trade can be problematic because of problems with recording and collecting data. As an illustration of this problem, when official data for all the world's countries are added up, exports exceed imports by a few percent; it appears the world is running a positive balance of trade with itself. This cannot be true, because all transactions involve an equal credit or debit in the account of each nation. The discrepancy is widely believed to be explained by transactions intended to launder money or evade taxes, smuggling and other visibility problems. However, especially for developed countries, accuracy is likely.

Factors that can affect the balance of trade include:

• The cost of production (land, labor, capital, taxes, incentives, etc.) in the exporting economy vis-à-vis those in the importing economy;
• The cost and availability of raw materials, intermediate goods and other inputs;
• Exchange rate movements;
• Multilateral, bilateral and unilateral taxes or restrictions on trade;
• Non-tariff barriers such as environmental, health or safety standards;
• The availability of adequate foreign exchange with which to pay for imports; and
• Prices of goods manufactured at home (influenced by the responsiveness of supply)

In addition, the trade balance is likely to differ across the business cycle. In export led growth (such as oil and early industrial goods), the balance of trade will improve during an economic expansion. However, with domestic demand led growth (as in the United States and Australia) the trade balance will worsen at the same stage in the business cycle.

Since the mid 1980s,United States has had a growing deficit in trade able goods, especially with Asian nations (China and Japan) which now hold large sums of U.S debt that has funded the consumption. The U.S. has a trade surplus with nations such as Australia and Canada. The issue of trade deficits can be complex. Trade deficits generated in trade able goods such as manufactured goods or software may impact domestic employment to different degrees than trade deficits in raw materials.

Economies such as Canada, Japan, and Germany which have savings surpluses, typically run trade surpluses. China a high growth economy, has tended to run trade surpluses. A higher savings rate generally corresponds to a trade surplus. Correspondingly, the United States with its lower savings rate has tended to run high trade deficits, especially with Asian nations.

SAVE YOURSELF FROM DEMERITS IN FOREX TRADING, SMART ZOMBI'S.

1. HIGH LEVERAGE:

While high leverage serves as an advantage to attract traders to the market, it can at times also act as a disadvantage for them. With such high levels of leverage available to traders in the FOREX market, comes an equally high level of danger.

This can be true for the high stake positions which carry along with them, too much risk, leading to margin calls. This is where efficient money management comes into play for playing safe.

Today, you can leverage your investment with an online FOREX broker by 200, or even 400 to 1 and this creates tremendous profit potential. But it's a fact that most traders actually over leverage and lose.

In stock trading you can buy and hold and you only risk what you have paid for the stock and so long as it comes back you make a profit and you can wait.

In FOREX trading its different - you have losses that are open ended and they pile up quickly. You can't just sit back - you need to take action.

2. VOLATILITY:

FOREX prices are volatile and make big moves everyday - combine this with leverage and you have a powerful tool for profits which of course can also cause losses.

Most traders have no idea about how volatility affects their trading and how to deal with it. Most FOREX traders have never heard of, let alone understand "standard deviation of price" yet it's an essential part of any traders FOREX education.

You have to know what is normal volatility and what isn't, to have any hope of succeeding with your FOREX trading strategy.

Most traders make the error of placing stops to close to their entry point and they get taken out by normal volatility and this is because they are normally over leveraged. Most traders try so hard to avoid risk they actually create it for themselves.

3. ALL TIME MARKET:

Although it is convenient for the trader to trade whenever it is suitable to him, it can be a rather tough job too. This is because, at times, it is not possible for an individual trader to keep track of the FOREX market, 24 hours a day.

This is where a broker comes into the picture. Retail or individual investors should try taking help from a professional broker rather than doing all the dealings himself straight with the huge market.

The broker will be an experienced professional who will act as an equal in your transactions, keeping you informed and updated about minute to minute details and fluctuations, and even guide you about the conditions, when to and when not to trade in the market.

Like every other financial market, FOREX market also has its share of advantages and disadvantages. But keeping in mind the two can surely help a trader become more vigilant and aware of what to expect while trading FOREX.

MERITS IN FOREX TRADING, SMART ZOMBI'S.

ADVANTAGES OF FOREX TRADING:

Although the FOREX market is by far the largest and most liquid in the world, day traders have up to now focused on seeking profits in mainly stock and futures markets. This is mainly due to the restrictive nature of bank-offered FOREX trading services.

There are many advantages to trading spot foreign exchange as opposed to trading stocks and futures. Some of these are given below.



1. SPREAD RATES:

Most online FOREX brokers offer a spread of 5 pips on EUR USD which is the most widely traded and liquid currency pair.

In the futures market spreads can vary anywhere between 5 and 9 pips and can become even larger under illiquid market conditions (which tends to happen substantially more often in futures currencies.

2. ALL TIME MARKET:

Foreign exchange market trading occurs over a 24 hour period picking up in Asia around 24:00 CET Sunday evening and coming to an end in the United States on Friday around 23:00 CET. Although ECNs (electronic communications networks) exist for stock markets and futures markets (like Glob-ex) that supply after hours trading, liquidity is often low and prices offered can often be uncompetitive.

From Sunday evening to Friday Afternoon EST the FOREX market
never sleeps. This is very desirable for those who want to trade on a part-time
basis, because you can choose when you want to trade--morning, noon or night.



3. QUICK SELL BEFORE YOU PURCHASE:

Equity brokers offer very restrictive short-selling margin requirements to customers. This means that a customer does not possess the liquidity to be able to sell stock before he buys it. Margin wise, a trader has exactly the same capacity when initiating a selling or buying position in the spot market. In spot trading when you're selling one currency, you're necessarily buying another.

4. HIGH LEVERAGE MARGIN:

FOREX brokers offer trade margin of 50, 100, 150, or even 200 to 1 of trade margin.

FOREX traders often find themselves controlling a huge sum of money with little cash outlay on the table. For example, a $1,000 in a 150:1 FOREX account will gives you the purchasing power of $150,000 in the currency market.

While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful, moneymaking tool.

Rather than merely loading up on risk as many people incorrectly assume, leverage is

essential in the FOREX market.

5. LIQUIDITY MARKET:

Turnover value in FOREX is $1.9 trillion per day. It is the largest trade

market in the world and the liquidity of the market is huge. Traders can easily cash in or cash out their capital in Forex market.

6. SMALL TRADING:

One might think that getting started as a currency trader
would cost a lot of money. The fact is, it doesn't. Online FOREX Firms now offer
'mini' trading accounts with a minimum account deposit of only $200-$500 with
no commission trading. This makes FOREX much more accessible to the

average
individual,

without large, start-up capital.

7. EVERY TIME MAKING PROFIT:

On the stock markets, you can only make money if shares are rising, but in economic
recession and falling 'bear' markets, there is little chance of making big money.
Forex is different. One of the most exciting advantages of FX trading is the ability
to generate p

rofits whether a currency pair is 'up' or 'down'. A trader can profit
by taking a 'long' position, (buying the currency pair at one price and selling it

later at a higher price), or a 'short' position, (selling the currency pair and buying
it back at a lower price). For example, if you think the US dollar will increase in
value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If
you think the Yen will increase in value against the Dollar then you will sell
Dollars and buy yen (go short). As long as the trader picks the right direction, a
potential for profit always exists.

8. HIGHLY DESIRED TRADING ENVIRONMENT.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised. FOREX markets are highly transparent.

Because of this transparency, as an FX trader, you will be able to exercise risk management strategies in accordance to the proper fundamental and technical indicators.

The FOR

EX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds. Markets that do not offer executable prices and force traders to absorb slippage obviously compromise the trader's profit potential considerably.

IS FOREX TRADING BETTER THAN STOCKS?,SMART ZOMBI'S.

STOCK:

A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks

A stock exchange is a corporation or mutual organization which provides "TRADING" facilities for stock brokers and traders to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividend.

FOREX:

The Foreign Exchange Market (FOREX) is quite different from the stock exchange. FOREX is primarily a short-term market. Most traders enter and exit deals within a 24 hour period -- sometimes within a few minutes. Many FOREX trades can be made in 1 day without building up a large brokerage fee, because FOREX trades are commission-free. Brokers earn money by setting a spread -- the difference between asking and selling prices.

The FOREX is the largest financial market in the world, with transactions worth $1.5 trillion every day. By comparison, all the American stock exchanges combined handle about $100 billion. The huge volume of FOREX allows it to be 1 of the most liquid markets in the world. There is always a buyer and seller for any type of currency, because the world economy relies on the movement of goods from country to country. The stock market is less liquid because participants may choose to hold their investments indefinitely or move on to other markets.

Non-Stop Trading 5 Days A Week.The FOREX is not based in any 1 location. Trading markets are located worldwide and, due to time zone differences, trades can be made 24 hours a day, 5 days a week.

FOREX TRAINING,SMART ZOMBI'S.

Do I need a Diploma or some kind of Certification to trade FOREX?” The answer is:

When attempting to make more profit than losses on the fluctuation of exchange rates between major currencies (i.e., Trading the FOREX), nobody is going to ask you for a diploma, a formal license or verify the amount of hours you've spent studying the Foreign exchange market and banking industry. All you need is the proper training.

10 TIPS OF FOREX TRADING, SMART ZOMBI'S.

1. NEVER USE A CHEAP FOREX ROBOT OR EXPERT ADVISOR:

There is no way you can get rich by paying out a couple of hundred dollars or less for a cheap software package, because all these systems lose money. Forex trading is not as simple as paying a few hundred dollars for a lifelong income.




2. TRADE WITHIN YOUR MEANS:

If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.



3. ALWAYS ACCEPT RESPONSIBILITY:

Lead from the front and accept responsibility for your actions. Learn the necessary skills and get a decent Forex education.





4. RIDE ON A WIN AND CUT YOUR LOSSES:

Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.




5. WORK SMART:
Sometimes you don’t need to work hard just get the right Forex information. It should only take you a couple of weeks at most and you are all set.







6. STOP LOOKING FOR LEADING INDICATORS:

There aren’t any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn’t be giving the secrets away.







7. MONEY MANAGEMENT:

If you face losses make sure you keep them small and always place a stop before you start to trade.






8. AVOID TRADING IN A THIN MARKET:

Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.

9. BE REALISTIC:

We all hear of traders making millions in a year from small stakes, but their not the norm.

If you could consistently make 50 -100% per annum, you would be up their with the best traders in the world.

Try and make money to fast in FX trading and you will wipe yourself out.

10. DON'T TICK WATCH:

Many traders sweat all day looking at prices - don't.

It will upset your discipline and get your emotions involved.

Work off the closing price of the day and set your orders for the next day and ignore all intra day moves.

INTERNATIONAL MONETARY FUND (IMF), FUNCTION. SMART ZOMBI'S.

FUNCTIONS:

The IMF performs the following functions:




1. MULTILATERAL PAYMENT SYSTEM:

To establish multilateral payment system among its member countries to facilitates free trade and eliminate foreign exchange restrictions.





2. EXCHANGE RATES:

It helps its member to maintain exchange rates stability among themselves.









3. INTERIM RELIEF:

It provides interim relief to the member for improving their balance of payment.







4. BUYING & SELLING OF GOLD:

The Fund buys and sells gold under certain circumstances. It also controls and monitors buying and selling or movement of gold among the members.






5. EXPERT SERVICES:

It prepares feasibility reports on large projects for its members. It provides technical and managerial information and offers its expert services on them.

INTERNATIONAL MONETARY FUND (IMF), BIG PARTICIPANTS.SMART ZOMBI'S

BIG PARTICIPANTS.

US, UK, Germany, Japan, France, and Ibzndia.

RESOURCES.

At the time of establishment the IMF had $ 8.8 billion as its fund provided by member countries. The amount was raised to $ 14.74 billion on January 1, 1961. It was further raised in 1962 by borrowing from ten rich countries. Every member is required.

1. To pay 25% of its share in dollars or in gold.
2. Or to pay two % of it total gold and dollar reserves.

QUOTAS & EXCHANGE OPERATORS:

Each member is assigned a quota that establishes its voting power, subscription and the limit of foreign exchange amount which it can borrow. Each member is required to subscribe partly in gold and partly in its own currency.

The Fund has designed the following banks as the custodian of its gold reserves:


1. The Federal Reserve Bank of New York.
2. The Bank of England.
3. The Bank Of France.
4. The Reserve Bank of India.

The IMF holds its currency subscription for the most part in the form of non-interest-bearing and non-negotiable notes that may be cashed on demand.

Every member is required to contact IMF to buy gold for its reserves. However,, if gold is available at better terms in the open market the member can buy from there.

Every member can withdraw from its quota up to 25% each month.

If a country is compelled to borrow from the Fund time and again the fact indicates that the country is facing the problem of balance of payment. Under such circumstances the fund will take the following measures.

1. The IMF will warn the country and demand of it to investigate into excess of imports over exports.
2. It will propose to the member to lend to the IMF in its own currency.


If the above measures fail the Fund will declare the country's currency as 'Short' and will resort to rationing of its currency.

INTERNATIONAL MONETARY FUND (IMF) (MANAGEMENT), SMART ZOMBI'S.

MANAGEMENT:

The fund is run by a board of governors consisting of one governor from each member country. The member is either a finance minister or the governor of the central bank. The board delegates its power to the executive board which includes 24 executive directors and is headed by a managing director. Six executive directors one each from the U.K., U.S.A., France, Germany, Japan, and India are permanent members and the rest are elected for two years. The executive board operates under the advice of Interim Committee which enjoys a ministerial level.