Movements in foreign exchange rates
Problem 1. Why should consumers be concerned with movements in foreign exchange rates?Use 2 references.Problem 2.
(a) Distinguish between primary markets and secondary markets.
(b) Distinguish between money and capital markets.Use 2 references.
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Why should consumers be concerned with movements in foreign exchange rates?
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a. Was the Swiss franc selling at a discount or a premium in the forward market? b. What was the 30-day forward premium (or discount)?
Based on the information provided, determine the net exposure of each foreign currency in dollars.
Discuss the theoretical perspectives of PPP and empirical evidence in testing PPP.
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