United States dollar

200 million dollars. The leading product of Aspen is Aspen Plus; we have to note that 48 % of sales were stemming from

past 13 years, announced that the Renminbi would switch exchange rate regimes and would begin to follow a more flexible regime that was tied to a basket of different currencies. Prior to this new change, the Chinese yuan was strictly pegged to the US dollar which helped them thrive economically in the global market. Less than a decade before the exchange rate regime was changed, the Asian financial crisis occurred and many East Asian countries were impacted. Compared to its neighboring countries, China

Because of this fascination, Gold through the ages has slowly turned into a symbol of power, becoming an intricate part of the world’s society. Eventually, this lead to gold turning into its very own monetary system called the Gold Standard. The United States and many other countries had accepted this form of trade until the 1900’s, where many economic challenges occurred due to an increase in wars. These challenges caused a new monetary system, called the Fiat System, to gradually replaced the Gold

South Africa, South Korea, Taiwan and UK against U.S. Dollar. For 2005, relative value of NEER is 0.972903 which indicates that the index for the Dollar depreciated to its major foreign trading countries. Furthermore, foreign export will increase because of depreciation of the Dollar while the Dollar is weak, it will increase the demand for U.S goods.

Fiat money is any legal currency that is not backed by a physical commodity, nor does it require a substantial value for the material. Fiat money is referred to those currency does not use some valuable kind as the currency standard. Fiat money does not represent the actual things and goods. Virtually, all paper money in the world today is fiat money, along with most coin currencies. Next, as same as money, we used today. That the government retains more and a suitable amount of the commodity, which

Prediction of the Dollar and Euro What is an exchange rate? Exchange rate is a price for that one country’s currency can be traded for another country’s currency, which involves always two currencies. The price of a currency is determined by the country’s currency’s demand relative to its supply in the market. Furthermore, there are many factors that impact exchange rates but the most influential factors are inflation rates, interest rates, income levels, government controls, and expectations. Due

at Bretton Woods, New Hampshire, United States of America (hereby U.S.) on the 22nd of July 1944. It was aimed at maintaining stability in the monetary system in the post World War II period. “In an effort to free international trade and fund postwar reconstruction the member states agreed to fix their exchange rates by tying their currencies to the U.S. dollar.” The fundamental of this system was liberalizing trade policy and promoting free trade. The U.S. dollar was linked to gold as a show of

Woods agreement in 1944, the U.S dollar became the world’s currency. Bretton Woods agreement was basically an agreement on which every country currency would be back up by the dollar, due to the fact that after WWII United States was the only one with the biggest gold reserve in the world. Although it was proposed as a good idea it had its flaws for one even though it help the U.S and other countries there was simply not enough gold to continue backing up the dollar value. Which lead to President Richard

imitated, therefore the supply grows slowly, allowing the government to reduce overspending and keep inflations under control. Under the Gold standard the monetary system is defined by a certain amount of gold, as oppose to fiat money, in which the dollar is backed by the government’s word, and is not linked to any particular asset. Historically commercial banks were very reliable in providing gold monetary exchanges. It is because of these banks, that people did not have to carry around a ton of gold

– CA (d) S > I  CA (e) S < I  CA 6. If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, and the expected return on dollar depreciation against the euro is zero percent, then (a) An investor should invest only in dollars. (b) An investor should invest only in euros. (c) An investor should be indifferent between dollars and euros. (d) It is impossible to tell given the information. (e) All of the above. 7. If the dollar interest rate is 10 percent, the euro interest