Assignment:
Q1. Plot the following exchange rates over the past five years: dollar/yen, dollar/DM, and dollar/pound. Are these exchange rates closely correlated with one another? You can use foreign exchange data from the Federal Reserve for this assignment.
Q2. Based on your review of several recent currency interventions, what reasons were given by the monetary authorities for these interventions? How much money was expended during these interventions? You can find stories of these interventions by searching the website of the Federal Reserve Bank of New York and the websites of other central banks linked through the BIS website.
Q3. Based on your review of The Economist, the Wall Street Journal, and the Financial Times, which countries are having currency problems? What are the causes of those currency problems?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.