1. Balance of Payment. Give an example

Q: Why do currencies float? What causes currencies to appreciate? And what causes currencies to…

A: Currency is defined as anything that is widely accepted to have value as a medium of exchange for…

Q: Describe some buyers and some sellers in the market for U.S. dollars.

A: When goods are demanded for final or intermediate consumption by the consumers then it refers to…

Q: Which policy measure is most likely to be effective in reducing a balance of trade deficit? Pick…

A: This situation is also referred as negative trade balance.

Q: Directions: Use the information in Table 1 to answer questions 1-3. Table 1: How much does $1 (ie.,…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A Japanese manufacturer would like to hedge against the risk that the Yen will appreciate against…

A: Meaning of Hedging Strategy: The term hedging strategy refers to the situation or a type of…

Q: If the PPP for yen per dollar is 243.77 and the Nominal exchange rate is 226.74. How would you…

A: The real exchange rate (RER) is the rate at which the goods and services of one nation can be…

Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Germany and Belgium use the exact same currency, why would real exchange rates be different?

A: A government will usually issue and control currency, which is used as a means of exchange to…

Q: In your own words, answer these questions: What is Foreign Exchange Black Market and how it…

A: Economics was introduced to bridge the gap between equity and equality. With scarce resources and…

Q: Using an appropriate diagram of foreign exchange market, explain the concepts of currency…

A: A foreign exchange market is defined as a place where the global exchange of currencies takes place,…

Q: All of the following are factors that cause supply and demand for currencies to change EXCEPT:   A.…

A: Gross domestic product: The total value of goods and services produced within a country' boarders…

Q: How value of exchange rate is being determined under different exchange rate systems?

A: The rate that is being depicted by the value of one currency being measured in terms of another…

Q: What are some of the reasons central banks and treasuries enter the foreign exchange markets, and in…

A: A central bank is a financial organization that oversees the monetary policy and controls the money…

Q: Recently U.S. dollar has been very strong relative to the major currencies. Do you like it? How…

A: Currencies, also known as money or legal tender, are medium of exchange widely accepted in a…

Q: Find US net export (current account balance) and its relation with US savings and investment. Draw a…

A: The current account balance measures the difference between a country's exports and imports of goods…

Q: future

A: Exchange rate is the price of one currency being measured in terms of another currency.These rates…

Q: Exchange Rates Table YEAR 2014 2015 2016 $1 $1 $1 Canadian $ 1.25 1.35 1.45 British Pound .85 .7 .6…

A: The exchange rate is the value of one currency in terms and relative to foreign currency. This shows…

Q: Suppose the three-month interest rate in Europe is 2 percent, but the three-month interest rate in…

A: Exchange rate is the rate at which domestic currency will be exchanged with another foreign currency…

Q: What is the link between the foreign exchange market and the real economy

A: The foreign exchange market is the market where countries can buy, sell, exchange, and speculate the…

Q: e. The exchange rate of the Dirham, the currency used in Morocco, is generally determined by demand…

A: The described exchange rate system used by Morocco can be classified as a "managed float" or a…

Q: Item Imports of goods and services Foreign investment in the United States Exports of goods and…

A: The current account balance (Taxi) is important for a country's monetary inflow and surge record. It…

Q: 1. The principal function of the foreign exchange market is the transfer of funds, thus purchasing…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: What are the consequences of Inflation on the balance of payments stability of a place

A: Inflation impacts Balance of Payments through impacting the Imports and Exports to and from the…

Q: Explain supply and demand for exchange rates

A: The demand–supply framework enables you to predict the following period’s rate. once you understand…

Q: Differentiate between floating exchange rate and exchange rate?

A: An exchange rate regulated by the economic authority with regard to a foreign currency or a bundle…

Q: 1. What is the name of the currency in your country? 2. What is the exchange rate between the dollar…

A: An exchange rate is the rate at which one currency can be exchanged for another. It is the price of…

Q: Around the world oil is priced consistently in United States dollars. In economic terms this is an…

A: World oil price is always quoted in U.S dollars. That is, country in any area of the world paying…

Q: Explain the determinants of a nation's foreign exchange rate.

A: A nation's foreign exchange rate is between two currencies. Basically, "trade rates are how much one…

Q: Read the following paragraph. Let Turkey be the domestic country. WHEN an emerging market loses…

A: Given information Turkey is under inflation pressure. Currency value in exchange market depreciates…

Q: How does interest rate affect exchange rate?

A: Interest rates are directly linked to investment. An interest rate is the cost of borrowing to the…

Q: If the Japanese yen appreciates against the U.S. dollar: Answer a. Americans should find Japanese…

A: The central bank has a tool of Monetary Policy (MP) through which it regulates the money supply,…

Q: What does Foreign Exchange mean? Why do we see currency fluctuations?

A: Foreign exchange is term used in the international economics. The term related to currency exchange…

Q: what advantages did adopting a single currency, the euro, give Europeans?

A: When talking about a single currency, it is the situation when two or more countries are using same…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: