Participants in the foreign exchange market are asked to explain the viewpoint of forex traders, brokers, individuals / companies, speculators and regulatory authorities.

Q: How does exchange rate fluctuation or exposure affect multinational enterprise? Discuss at least two…

A: 1A) The exchange rate of currency/monetary standards which are the mechanism of trade among…

Q: Monetary union, in comparison to dollarization, means that   Multiple Choice   countries forgo…

A: A multilateral agreement among numerous countries to create a unified currency. Monetary unions have…

Q: How will the Russian-Ukraine war affect European union ? and what actions should be taken by…

A: On February 24, 2022, Russia attacked Ukraine. The invasion, which is widely regarded as an act of…

Q: Construct a model that shows how – in the longer run – money supply and demand as well as the dollar…

A: The exchange rate is the value of domestic currency required to be paid for obtained a unit of the…

Q: The IMF monitors the international monetary system and global economic developments to identify…

A: The purpose of the organisation is to ensure worldwide monetary cooperation. It stables the currency…

Q: Give an example in the recent past when the Central Bank intervene in the foreign exchange market in…

A: Answer: Foreign exchange intervention is one of the main functions of any central bank, in this…

Q: Critically examine the FIVE types of foreign exchange market participants and identify their motives…

A: Foreign Exchange Market is a global digital network where foreign currencies are bought and sold by…

Q: The Volkswagen investement with Ghana.  What are the strategic impacts in terms of foreign exchange…

A: Inflation rates in a country may have a huge impact on the value of its currency and its foreign…

Q: What are the challenges of International Monetary Fund and the International Monetary System? Pls…

A: The International Monetary Fund (IMF) stabilizes the exchange rates and promotes monetary…

Q: Explain the assumptions that "central banks cannot follow independent monetary policies in a fixed…

A: Fixed exchange rate system refers to the system in which the exchange rate of currency has been…

Q: Explain this function of BSP -Liquidity management -determination of exchange rate policy -lender…

A: The BSP's vitally essential goal is to keep up with value strength helpful for adjusted and…

Q: a) Recently, a government official in Europe stated that the European Central Bank needs to  weaken…

A: The euro, the new currency of the European Union, went into effect on January 1, 1999. The euro was…

Q: b- Forex market is the global decentralize market for trading of currencies and determines the…

A: Foreign exchange is significant because the rate of exchange, influences a country's economic…

Q: Variations in the foreign exchange rate can impact on the profitability of businesses. Explain what…

A: Exchange rate is very important for domestic as well as international trade. Exchange rate…

Q: Define the term “Exchange rate volatility

A: Exchange rate is known as the rate at which the currency of one country is exchanged for the…

Q: When the Federal Reserve buys government securities (bonds) in the open market, how will it affect…

A: Open market operations (OMO) refers to when the Federal Reserve buys and sells primarily Treasury…

Q: differentitate the following a)    Autonomous transaction and accommodating transaction b)…

A: a) Exports and imports of a country are not influenced by the position of the BOP account.…

Q: Suppose that the expected real interest rate in the United States is 3 percent per year while that…

A: Exchange rate refers to the value of one currency in terms of another currency. The three types of…

Q: Discus strategies for improving current accounts position

A: Answer: Introduction: The current account on the balance of payment account records all the…

Q: For each of the following participants of the foreign exchange market, state (i) whether they are a…

A: Currency appreciation implies cheaper imports and expensive exports. Imports become attractive thus…

Q: Critically evaluate the importance of the Marshall- Learner condition in the stability of the…

A: The foreign exchange market is the over-the-counter market that determines the exchange rate of…

Q: What technology is used in the Omani forex market to support companies in hedging exchange rate…

A: Hedging refers to a strategy that tries to control or put a limit risk in financial assets or we can…

Q: The international unit of accounting used by the International Monetary Fund (IMF) is called:…

A: International monetary fund(IMF) is the organization of 190 countries working towards maintaining…

Q: It was not a premise for the development of the International Financial System: Select one: a.…

A: International Financial Institutions (IFIs) were established by groups of countries to encourage…

Q: An American investor is considering investing $1,000 in default-free 90-day Japanese bonds that…

A: A. To invest in the Japanese bond the investor has to exchange his currency to Japan’s. for $100 at…

Q: Why do exchange rates matter to companies, especially those involved with the foreign direct…

A: Exchange rate (ER) tells us how much of a currency (home) is valued against the other (foreign).…

Q: This summer has been very hot. In fact, many crops that need water to thrive have been suffering…

A: When there is a rise in imports or a fall in the export of a country it implies a negative impact on…

Q: Choose the correct answer and give correct explaination 1. A central bank can fix an exchange rate…

A: The exchange rate is the rate at which one nation's currency is exchanged for another nation's…

Q: The rise of globalization is due to the many companies that have become multinational corporations…

A: The theory of interest rate parity implies that interest rates and currency value movement are…

Q: Explain what is meant by an asymmetric shock and discuss the role of monetary, fiscal and income…

A: When an economy all of a sudden gets pushed out of its normal economic cycle because of an…

Q: Describe the responsibilities of the International Monetary Fund (IMF).

A: Created in 1945, the International Monetary funds (IMF) is the organization of 190 countries working…

Q: Consider a country that fixes the value of its currency to gold. This country can freely conduct…

A: Answer -

Q: Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the value…

A: Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the…

Q: Discuss examples of recent macropolitical risk events and the affect they may or may not have on a…

A: Macro political risks are those risks that impact companies all over the nation. These risks are…