Discussion

Questions-6

1. What do appreciation and depreciation of a currency mean?
2. What does effective exchange rate mean?
3. What are the types of exchange rate regimes?
4. What does capital control mean?
5. What does arbitrage mean? Explain the -no arbitrage condition?
6. What is vehicle currency?
7. What are the factors that influence the portfolio decisions of an investor? Explain covered
and uncovered interest parity.