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Currency Exchange Rates

Currency Exchange Rates

After reading chapters 16, 17, 18, and 19, write a 2-page paper describing how currency exchange rates are determined in markets.

Exemplify how it occurs by showing it in graphical form.

How does a country’s balance of trade coincide with its exchange rate with another country?

Please cite sources used

 

 

 

 

 

 

 

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Exchange rate

Currency is just like any other commodity in the market. Its rates are determined by demand and supply factors. However, it depends with the currency of a country whether it is fixed or pegged, free-floating or a hybrid of the two.  The free floating case is what involves the market forces in determining the currency rates (Rosenberg & Michael, 13).

Taking the example of two trading partners or countries, that……………..

APA

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