The newly-formed kingdom of Monkeytown is attempting to create their first currency. Many suggestions have been made, but the current favorite is to use bananas. Would bananas be a valid form of money? Why or why not? Would the residents of Monkeytown be able to use their bananas to make purchases in America? Why or why not? In your answer, please define any important economic terms used.

Which of the following are included in economist Robert Mundell's requirements for an optimal currency area? Check all that apply. Check all that apply. Labor mobility Wage and price flexibility Capital mobility Differing capital market regulations Although the United States is one country, consider each of the 50 states in the United Stated as its own economy. For example, California would be considered one economy, while Nevada would be considered a separate economy. Use the following table to indicate whether these 50 separate state-level economies meet the conditions proposed by Rober Mundell, Condition Labor mobility Wage and price flexibility Yes No C

To reduce economic exposure, should you REDUCE or INCREASE the amount of production in a location where the currency is appreciating?

A carry trade is a trading strategy that involves borrowing low-interest currencies and buying high-interest currencies, with results that can be profitable. During much of the 2000s, Japanese yen interest rates were close to zero while Australia’s interest rates were positive. Investors pursued a carry trade strategy, investing billions in Australian dollars and driving that currency’s value up against the yen. According to the interest parity condition, such a strategy should not be systematically profitable: On average, shouldn’t the interest advantage of Australian dollars be wiped out by relative appreciation of the yen? Is the prevalence of the carry trade evidence that interest parity is wrong? What is the risk of investing in such a strategy? Incorporate the Japanese Yen/Australian Dollar exchange rate history in your discussion.

what is a speculative attack on a currency. How does it work. Provide a real world example.

It is very important to the leaders of Dionland that people can make any trade they wish to using their national currency of Paulbucks. If this is the case, what policies would the Impossible Trinity suggest they might follow? What would they be giving up in each case?

If you were responsible for marketing CAT scanners worldwide (average price, $1,200,000) and your country of manufacture was experiencing a strong and appreciating currency against almost all other currencies, what options are available to you to maintain your competitive advantage in world markets?

In recent years, China has helped make its currency ____ by ____ U.S. dollars. stronger; buying stronger; selling  weaker; buying weaker; selling

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

Fully assess the claim that the high and persistent rates on unemployment in parts of the Eurozone suggest it is not an optimal currency area. (approx. 250 words)