Scribd Logo
Upload

Welcome to Scribd!

  • Exchange Rate - Question

    Uploaded by

    MC Squiddy
    3 views1 page
    This document discusses factors that influence exchange rates, including demand and supply of currencies. Demand for a currency is downward sloping because as the exchange rate increases, the currency becomes more expensive and less is demanded. Supply of a currency is upward sloping because as the exchange rate increases, more of the currency is supplied. The document will also examine factors that increase exchange rates, disadvantages of floating exchange rates, whether a government should fix exchange rates, and policies a government can use to influence exchange rates.

    Original Description:

    Original Title

    Exchange Rate -Question

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses factors that influence exchange rates, including demand and supply of currencies. Demand for a currency is downward sloping because as the exchange rate increases, the currency becomes more expensive and less is demanded. Supply of a currency is upward sloping because as the exchange rate increases, more of the currency is supplied. The document will also examine factors that increase exchange rates, disadvantages of floating exchange rates, whether a government should fix exchange rates, and policies a government can use to influence exchange rates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views1 page

    Exchange Rate - Question

    Uploaded by

    MC Squiddy
    This document discusses factors that influence exchange rates, including demand and supply of currencies. Demand for a currency is downward sloping because as the exchange rate increases, the currency becomes more expensive and less is demanded. Supply of a currency is upward sloping because as the exchange rate increases, more of the currency is supplied. The document will also examine factors that increase exchange rates, disadvantages of floating exchange rates, whether a government should fix exchange rates, and policies a government can use to influence exchange rates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Exchange Rate

    1.Explain THREE (3) factors that will change the demand and supply of exchange rate. (6m)

    2. Explain why demand of currency is always downward sloping? (3m)

    3. Explain why supply of currency is always upward sloping? (3m)

    4. Explain TWO (2) factors that will increase the exchange rate. (4m)

    6. Explain disadvantages of floating exchange rate.(9m)

    7. Discuss should a government fixed the exchange rate? (6m)

    8.Differentiate floating exchange rate and fixed exchange rate with diagrams (15m)

    9. What is the government policy to influences the exchange rate in the country. (4m)

    You might also like