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
…………….Answer Preview………….
Name:
Tutor:
Course:
Date:
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
659 Words