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  • Review Ch9

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    Đỗ Thuỳ Linh
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    The document discusses the impact of various events on the exchange rate of the Vietnamese Dong (VND) relative to the US Dollar. Specifically, it considers how the VND/USD exchange rate would be affected by: (1) more Vietnamese families traveling abroad or staying home for the new year, (2) changes in remittances sent back to Vietnam near Tet holiday, and (3) interest rate decisions by the State Bank of Vietnam and tariffs imposed by the US. The document asks to illustrate the effects on a diagram of the foreign exchange market.

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    The document discusses the impact of various events on the exchange rate of the Vietnamese Dong (VND) relative to the US Dollar. Specifically, it considers how the VND/USD exchange rate would be affected by: (1) more Vietnamese families traveling abroad or staying home for the new year, (2) changes in remittances sent back to Vietnam near Tet holiday, and (3) interest rate decisions by the State Bank of Vietnam and tariffs imposed by the US. The document asks to illustrate the effects on a diagram of the foreign exchange market.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views2 pages

    Review Ch9

    Uploaded by

    Đỗ Thuỳ Linh
    The document discusses the impact of various events on the exchange rate of the Vietnamese Dong (VND) relative to the US Dollar. Specifically, it considers how the VND/USD exchange rate would be affected by: (1) more Vietnamese families traveling abroad or staying home for the new year, (2) changes in remittances sent back to Vietnam near Tet holiday, and (3) interest rate decisions by the State Bank of Vietnam and tariffs imposed by the US. The document asks to illustrate the effects on a diagram of the foreign exchange market.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    1.

    Let’s use the foreign exchange market to analyze the impact of each of these events
    on the exchange rate of VND/USD. Illustrate your answer on the diagram.
    a) More Vietnamese families decide to travel abroad at the beginning of the
    New Year
    b) The amount of remittances sent back Vietnam near Tet holiday in this year
    sharply increases
    c) The State Bank of Vietnam decides to lower the domestic interest rate while
    keeping the ceiling of dollar interest rate in Vietnam unchanged.
    2. Let’s use the foreign exchange market to analyze the impact of each of these events
    on the exchange rate of VND/USD. Illustrate your answer on the diagram.
    a) The US government imposes the higher anti-dumping tariff on Vietnamese
    catfish exported to US market
    b) More Vietnamese families decide to stay at home rather than travelling
    abroad at the beginning of the New Year as before.
    c) The amount of remittances sent back Vietnam near Tet holiday in this year
    sharply increases

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