Considering the inflation and interest differential between the America and Turkey, what is likely to happen to real exchange rate in Turkey? Calculate and show your answer.

Q: Explain the exchange rate overshooting with the help of the diagrams that you drew for part a. Why…

A: Exchange rate overshooting is more volatile in short run as there is an excessive movement in…

Q: Discuss how expectation influences exchange rates. Thank you!

A: The exchange rate means a rate at which one country exchanging its goods and services with another…

Q: Explain the biggest advantage and the biggest disadvantage of fixed exchange rates compared to…

A: The term "fixed rate of exchange system" refers to a system within which the rate of exchange is…

Q: what is volatility in exchange rate ?

A: Exchange rate is defined as the rate at which the currency of one country is exchange for the…

Q: Evaluate how does one judge whether exchange rate is at an appropriate or not? Expound your answer.

A: In order to judge the appropriate level of exchange rate, trends in REER -Real Effective Exchange…

Q: Use the exchange rate diagram to illustrate and explain what will happen in each of the following…

A: The level of inflation has a direct impact on the exchange rates between currencies. The country…

Q: Write a short note on the "Factors that influence exchange rates"

A: Exchange rate refers to the value of one currency for the purpose of conversing to another

Q: What does it mean by "exchange rate practices", when pertaining to excahnge rate systems and…

A: The measure that depicts the value of one currency being measured in terms of another currency to…

Q: What will happen if exchange rate fluctuate? (please do not copy answers on the internet, thank you)

A: Exchange rate: The value of one country's currency in relation to the currency of another country or…

Q: What determines the value of a currency in the flexible exchange rate system ?

A: The exchange rate is the value of one country’s currency to the value another country’s currency.

Q: Why is exchange rate important in International Finance? Can we get rid of Exchange rate in…

A: A. The value of the currency of one nation in terms of the currency of another nation is known as…

Q: Suppose that Russia decided to increase interest rates by %2.  Considering the inflation and…

A: The interest rate is the percentage of the loan amount that a borrower would pay the lender in…

Q: Q. Find any three saarc countries, Calculate effective exchange rate too.

A: South Asian Association for Regional Cooperation (SAARC)  founded in 1985.  Effective exchange rate…

Q: What is it that determines the relationship between spot and forward foreign exchange rates?

A: The spot exchange rate is the rate at which transactions happen currently. The forward exchange rate…

Q: How value of exchange rate is being determined under different exchange rate systems?

A: The rate that is being depicted by the value of one currency being measured in terms of another…

Q: explain Antidumping Duties and Managed Exchange Rates in detail

A: Antidumping Duties:- Antidumping duties can be defined as the protection tariffs that are imposed by…

Q: Most exchange rates are free-floating.  True or False

A: A free floating exchange rate is solely determined by market forces of demand and supply of foreign…

Q: What are the main arguments presented against flexible exchange rates?

A: Answers to the question is as follows :

Q: Are fixed or floating exchange rates better for the eurozone countries?

A: To what extent did the euro's creation alter currency policy in the Eurozone countries? The answer…

Q: What is the difference between independent floating, managed floating, and fixed exchange rate…

A: In the international market, when countries decides to make an economic exchange, the price of the…

Q: .Suppose country A is considering fixing its exchange rate with country B. What would make country A…

A: The aim of a fixed exchange rate management is to maintain the value of a currency within a narrow…

Q: What happens to the exchange rate of a country’s currency when that country experiences high levels…

A: Exchange rate is the rate at which nations currency are exchanged  and the rate is determined by the…

Q: Why can you not borrow more foreign currency in a fixed exchange rate system?

A: A fixed exchange rate system, also defined as a pegged exchange rate, is the one in which currency's…

Q: Describe the economic logic behind the theory of interest rate parity.

A: Interest rate parity is defined as the difference between the interest rates on similar type of…

Q: Explain supply and demand for exchange rates

A: The demand–supply framework enables you to predict the following period’s rate. once you understand…

Q: Differentiate between floating exchange rate and exchange rate?

A: An exchange rate regulated by the economic authority with regard to a foreign currency or a bundle…

Q: What is South Koreas Exchange rate policy and risk?

A: The amount of one currency that a person or organization considers equal to another when purchasing…

Q: Why do exchange rates matter to companies, especially those involved with the foreign direct…

A: Exchange rate (ER) tells us how much of a currency (home) is valued against the other (foreign).…

Q: how nominal and real exchange rates are determined, in both the short runand the long run.

A: The nominal exchange rate tells how much foreign currency can be exchanged for a unit of domestic…

Q: the key role played by the law of one price in determining exchange rates.

A: One price law refers to the economic theory stating that identical products in different/various…

Q: Using the foreign exchange market (CAD/EURO), suppose price level in Canada is higher compared to…

A: Exchange rate is the rate at which national currencies are exchanged . And exchange rate is…

Q: What is the current system of exchange rates? explain

A: There are three types of exchange rate: Fixed exchange rate: This implies when the value of one…

Q: Why floating exchange rate is more competitive than hard peg exchange rate?

A: In an economy whereby the supply and demand tools helps in setting the exchange rate, then such…