Exchange Rates and International Investing
Many factors affect currency exchange rates. Determine the effect of the following factors on changes in currency exchange rates, providing examples using the rate of exchange between two currencies. How might this information be used if you were travelling to a foreign country?
- Inflation
- Interest rates
- National debt
- Unemployment
- Money supply
- Political stability 300–500 words
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A rate of exchange is the ratio at which a particular currency is traded with a different one (James, Marsh and Sarno, 2012). It could also mean the worth of a nation’s currency compared to another country’s currency. This ratio is usually influenced by numerous elements…
(458 Words)