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Provide an example of a direct quote of an exchange rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Visit one of the many websites that lists all of the current exchange rates between different currencies around the world. Try a financial newspaper’s site such as ft.com (follow the links to “Market Data,” and then “Currencies”), or try websites devoted to foreign exchange market data such as oanda.com or xe.com (dig down; don’t just look at the major currency tables). According to these lists, how many distinct currencies exist around the world today? Are some currencies used in more than one country?
What is interest rate parity? Is it a reasonable assumption that interest rate parity holds between two countries? Briefly discuss what interest rate parity entails for the possibility of pursuing interest rate policy to stabilize an economy, respectively with a regime with a floating and fixed exchange rate.
Why can you not borrow more foreign currency in a fixed exchange rate system?
In the Mundell–Fleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when the money supply is reduced. What would happen if exchange rates were fixed rather than floating? (question from Macroeconomics)
What is interest rate parity? Is it a reasonable assumption that interest rate parity holds between two countries? Briefly discuss what interest rate parity means for the possibility of pursuing interest rate policy to stabilize an economy, respectively with a regime with a floating and fixed exchange rate
Discuss the view that an exchange rate appreciation is always beneficial for an economy.
If a country has a floating exchange rate will a rise in exchange rate be bad or good for exporters?
Differentiate between floating exchange rate and exchange rate?
Explain how exchange rates may impact the performance of international equity investment.
Relationship between exchange rate movements and interest rates.
Identify two factors (or characteristics of economy) that underlie a nation’s decision to adopt a fixed exchange rate or a floating exchange rate.
What is the definition of the nominal exchange rate? What would cause the demand for the foreign exchange curve to shift to the right-hand side?