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- How much of their local currency would someone from UK (local currency is Pound) need to buy an iPad that is being sold for #=$500 in the US?What is bought and sold in the foreign exhange market?Refer to the following list, and explain who will be buying Canadian dollars and who will be selling. a) a Canadian businesswoman visiting Japan The Canadian businesswoman will be selling vCanadian dollars to buy Japanese yen b) a Russian tourist visiting Cape Breton The Russian tourist will be (Click to select) v dollars to spend in Cape Breton. c) an American corporation building a new plant in Saskatoon The American corporation will be (Click to select) v Canadian dollars in order to purchase the building in Saskatoon. d) a Canadian bank expanding its operations in the United States The Canadian bank will be (Click to select) v Canadian dollars to buy American dollars to expand its operations in the U.S. (Click to select) selling buying
- For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Show your work for any calculations. (a) Draw the foreign exchange market for euros in terms of pounds. Label the equilibrium exchange rate (e1), the equilibrium quantity (Q1), and the current exchange rate (ec). Assume that there is a shortage of the euro at the current rate. (b) Assume the current exchange rate for the Chinese yuan in terms of the U.S. dollar is $0.20 per yuan. Based on this information, draw the foreign exchange market for dollars. Assume the market is in equilibrium. The United States and Mexico are trading partners. (c) Using side-by-side graphs of the exchange market for the U.S. dollar and the Mexican peso, show the impact of an increase in the demand for pesos. (d) Based on the change indicated in part (c), is the U.S. dollar appreciating or depreciating? (e) If the United States began…In the last 4 years, the exchange rate Pound to Euro depreciated (decreased) to an average of 1.13 (from 1.30 before 2016). When citizens from the UK would go on holidays in a Euro zone country (e.g. Spain), would a lower exchange rate of 1.13(Sterling Pound to Euro) instead of an exchange rate of 1.30 (Pound to Euro) be of advantage or disadvantage for British tourists in Europe? Explain.Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the value of US dollar?
- Why some countries are using thin film interference effect in the currencies?A6 National currency of a country Z is devaluated by 25%. The coefficient of price elasticity of exports demand (EX) is estimated as 0.4, the coefficient of price elasticity of imports demand (EM) is supposed to equal 0.2. Find whether the devaluation will improve the trade balance of the country.Find US net export (current account balance) and its relation with US savings and investment. Draw a figure to show it.
- A9 In which of the following scenarios are currency speculators likely to attack a country's currency? When a currency is manipulated such that it makes imports more attractive for domestic residents. When the currency is fairly valued. When the currency is undervalued. When the value of the currency is pegged below the market equilibrium rate. When a currency is manipulated such that it makes a country's exports more attractive.All of the following are factors that cause supply and demand for currencies to change EXCEPT: A. relative interest rates B. relative income levels C. relative GDP levels D. relative inflation rates21. What does Foreign Exchange mean? Why do we see currency fluctuations?
