a)
To determine: Whether the dollar is sold at a discount that is relative to a franc or at a premium.
Introduction:
The price of a country’s currency in relative to the of another nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.
b)
To determine: Whether the financial market expect the value of franc to strengthen comparatively to the value of a dollar.
Introduction:
The market where the people trade the securities and commodities is a financial market. The main function of the financial market is to borrow and lend.
c)
To determine: The true suspect of the relative economic conditions in Country U and in Country S
Introduction:
The present state of the economy in a region or a country is the economic conditions.
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