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Discuss the characteristics of the Exchange rate in Morocco and explain the pros and cons of it.
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- Give full definition of the market for foreign exchange.From your understanding, discuss the advantages and disadvantages of a fixed change rate regime. Give examples of two countries that adopt a fixed exchange rate system by mentioning which currency they are pegged to and what rateWhat are different types of exchange rate systems. What type of exchange rate system is better in case of Pakistan? Provide justification.
- What can be understood from Foreign Exchange Rates?Define spot, forward, and swap transactions in the foreign exchange market and give an example of how each could be used.Describe how the prevailing interest rates in a country affect its exchange rates with the currency of its major trading partner.
- Explain the implications of interest rate parity and purchasing power for U.S. dollar exchange rate against the Euro. Then, evaluate the usefulness of relative PPP in predicting movements in foreign exchange rates on (i) the short-term basis and (ii) the long terms basis.Explain the foreign currency swaps and why are they undertaken? Explain the functional currency and what is a presentation currency.Illustrate the different factors that determine future foreign exchange rates in the long run
- Select the correct definition of indirect exchange rate. O Foreign currency per unit of domestic currency. Domestic currency per unit of foreign currency.In your view which exchange rate regime is beneficial for the countries and why?Explain the need for and problems associated with forecasting foreign exchange rates.