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The new zealand dollar pushed toward us55c yesterday as the

The New Zealand dollar pushed toward U.S.55c yesterday as the greenback was dumped on a surprise U.S. Federal Reserve initiative to pump more money into a still-choked financial system.

a. Prior to this move, was the NZ dollar trading at U.S.56c or U.S.54c? Explain your reasoning.

b. Why would the U.S. dollar fall on this news?

c. Why would the Fed have been pumping so much money into the financial system in 2008?

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Business Economics: The new zealand dollar pushed toward us55c yesterday as the

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