Outline the arguments for and against a system of fixed foreign exchange rates.

Q: A lesson of the "impossible trinity" is that, if a country wants to have both exchange rate…

A: "Exchange rate refers to the value of one currency in terms of another." In other words, the…

Q: What are five ways in which Zambia can improve unfavourable balance of Trade

A: The objective of the question is to identify five strategies that Zambia can implement to improve…

Q: What are foreign exchange markets? Why does the State Bank of Vietnam intervene in the foreign…

A: When economies are open to trade, they interact in international market at a specific exchange rate.

Q: What is one of the ways governments can influence exchange rates?

A: the government uses the exchange rate tool to achieve multiple objectives such as full employments,…

Q: Describe the international monetary systems implemented under the Bretton Woods, Smithsonian, and…

A: The International financial systems discuss with the operative systems of the monetary surroundings…

Q: Differentiate between foreign exchange and the foreign exchange rate.

A: Foreign exchange refers to the process of converting one currency into another currency for various…

Q: Which of the following would be part of Canada's current account? a new office building purchased by…

A: A country's balance of payments, which tracks all foreign transactions between its citizens and…

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: Discuss the four main functions of foreign exchange markets for global businesses.

A: Foreign exchange means the process of converting one currency into another, facilitating…

Q: East Asian economies had opened their borders to Foreign Direct Investment and their productivity…

A: The exchange rate refers to the rate at which one currency can be exchanged for other currency. It…

Q: ive recommendation on how to manage exchange rates

A: Fixed exchange rate policy A fixed exchange rate provides stability to a currency. Examples of…

Q: Describe the fixed exchange rate monetary system.

A: The exchange rate is the rate at which the currency of a country is being exchanged with the…

Q: Contrast the effects of having a fixed versus a floating exchange rate for a country’s economy

A: Exchange rate are the currency values which are used by the countries for the purpose of imports…

Q: Who would demand U.S. dollars in the foreign exchange market? U.S. firms and households wishing to…

A: Foreign Exchange Market: The foreign exchange market can be defined as an  institution which…

Q: spot and forward exchange rates to  discuss

A: Depending on the trade operations, commodities markets have varying product prices. The product's…

Q: Discuss how government intervention in the foreign exchange market can effect economic conditions of…

A: 1.Government intervention in foreign exchange market. There are 2 types of foreign exchange rate:…

Q: Why is it necessary to know the process and policies foreign exchange rate?

A: In International trade, exchange rate is defined as the rate at which the currency of one country…

Q: Many developing countries, like Mexico, have moderate to high rates of inflation. At the same time,…

A: There is high inflation in many developed countries, such as México. As inflation is high currency…

Q: taking the benefits of a flexible exchange rate system into  consideration, defend the claim that…

A: Due to the flexible exchange system would have the growing rate and associated, with the relative…

Q: Discuss the pros and cons of having a fixed exchange rate regime using your own words.

A: Fixed exchange rate is the system imposed by central bank or government that bind the official…

Q: What are the advantages and disadvantages of a managed floating exchange rate system to the foreign…

A: Managed floating exchange rate system is defined as a system of currency exchange which neither…

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: How can an unexpected fall in exchange rates injure the financial health of a nation’s banks?

A: Exchange rate determines the price of the currency of a domestic country when it is exchanged with…

Q: Explain how exchange rates are determined in international business

A: Exchange rate refers to the rate at which one country's currency can be exchanged for any other…

Q: Current characteristics of the foreign exchange market (volume and volatility)

A: Introduction The over-the-counter worldwide marketplace known as the foreign exchange market, or…

Q: a nation's currency is said to appreciate when exchange rates change so that a unit of its currency…

A: Answer: True, Explanation: If the currency of a  nation appreciates then it buys more units of…

Q: Which of the following would be classified as a credit item on the current account of the balance of…

A: Credit can be done when money gets, while debit means money will be reduced when spend on something.…

Q: what are foreign exchange markets and what is their most important function and its performance

A: foreign exchange markets The foreign exchange market is a market in which there will be a continuous…

Q: What effect does a high exchange rate have on imports, exports, and that country's production?

A: The rate that measures the value of a nation’s currency in terms of another nation’s currency is…

Q: What led to the demise of the Bretton Woods Exchange Rate System?

A: The US dollar was tied to the value of gold under the Bretton Woods System, and other currencies…

Q: Provide two examples of how a company might engage in currency speculation.

A: Currency speculation refers to when an individual buys a currency with the aim to earn profit rather…

Q: discuss the qualities if an efficient international monetary system that US should work towards

A: IMS is a set of international agreed rules and the institutions that facilitates for the…

Q: car for $26,000. Volkswagen produces and sells a compact car for 19,000 euros. If the exchange rate…

A: ‘Exchange Rate’ means the price of the currency of one country in terms of foreign currency. It can…

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: Imports of goods and services is not a source of demand for foreign exchange True/False

A: The requirements for foreign currency to cover the payments is refferd to be as the demand for…