What is the expected difference between interest rates in the United States and Japan? Are rates going up, going down or staying flat?

What conditions have contributed to Interest Rate Parity not holding in the market during the past few years?

If a country’s currency is overvalued in a fixed rate system, what can it do in the short-run?

Some people try to make money by watching exchange rates and trying to get the best deal on their trades. What are the risks of trying to do this? What are the rewards if you’re successful?

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.

Relationship between exchange rate movements and interest rates.

When a country's currency appreciates, is this generally good news or bad news for a country's consumers? Is it generally good or bad news for the country's businesses? Explain your reasoning - try to use examples.

Does the purchasing power of the dollar change over time due to inflation?

How would each of these events affect the supply or demand for Japanese yen?  A) Stronger U.S. economic growth. B) A decline in Japanese interest rates. C) Higher inflation in the United States.

You are going to Japan on an exchange trip in a few months and need to turn your dollars into the Japanese currency, the yen. Right now the exchange rate is $1 = 105 yen, but you expect the dollar to appreciate next month and it should be valued at $1= 107 yen. If you exchange $200 for yen today, how many yen will you receive? Explain. If you decide to wait and exchange your dollars when they are worth $1= 107 yen, how many yen will you receive? Explain. Based on this information, should you exchange your money now or wait a few months? Explain.