Western countries have responded to the invasion of Ukraine with a sanctions that seek to completely isolate Russia from the western- nternational financial and monetary system. The Russian ruble has lost 4% to the dollar year-to-date to reach a record low, in large part due to verity of western sanctions imposed on Russia. one of these sanctions is sia's foreign assets. 26th this year, jurisdictions issuing key internationally used currencies he US and the EU but also the UK, Canada, Japan, Australia, and effectively froze more than half of the Central Bank of the Russian (CBRF's) assets aimed to incapacitate use of its international reserves. following questions: (1) to analyze the monetary approach to exchange w we say that The nation has no control over its money supply and icy at all under a fixed exchange rate system in the long run; (3) to -asons that the freezing of Russia's foreign assets by the above countries ruble seriously depreciate according to the monetary approach.
Western countries have responded to the invasion of Ukraine with a sanctions that seek to completely isolate Russia from the western- nternational financial and monetary system. The Russian ruble has lost 4% to the dollar year-to-date to reach a record low, in large part due to verity of western sanctions imposed on Russia. one of these sanctions is sia's foreign assets. 26th this year, jurisdictions issuing key internationally used currencies he US and the EU but also the UK, Canada, Japan, Australia, and effectively froze more than half of the Central Bank of the Russian (CBRF's) assets aimed to incapacitate use of its international reserves. following questions: (1) to analyze the monetary approach to exchange w we say that The nation has no control over its money supply and icy at all under a fixed exchange rate system in the long run; (3) to -asons that the freezing of Russia's foreign assets by the above countries ruble seriously depreciate according to the monetary approach.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 7: Western countries have responded to the invasion of Ukraine with a
plethora of sanctions that seek to completely isolate Russia from the western-
dominated international financial and monetary system. The Russian ruble has lost
more than 64% to the dollar year-to-date to reach a record low, in large part due to
surprising severity of western sanctions imposed on Russia, one of these sanctions is
freezing Russia's foreign assets.
On February 26th this year, jurisdictions issuing key internationally used currencies
(especially the US and the EU but also the UK, Canada, Japan, Australia, and
Switzerland) effectively froze more than half of the Central Bank of the Russian
Federation's (CBRF's) assets aimed to incapacitate use of its international reserves.
Answer the following questions: (1) to analyze the monetary approach to exchange
rate; (2) why we say that The nation has no control over its money supply and
monetary policy at all under a fixed exchange rate system in the long run; (3) to
explain the reasons that the freezing of Russia's foreign assets by the above countries
made Russian ruble seriously depreciate according to the monetary approach.
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