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The Foreign Exchange Market: Check For Understanding! P/$ S P
The Foreign Exchange Market: Check For Understanding! P/$ S P
The Foreign Exchange Market: Check For Understanding! P/$ S P
OTL 6.3
P/$
US Dollar
S$1 p1 D$1 Q$
Show and explain what would happen to the price of the dollar if more Japanese tourists come to the US.
Show and explain what would happen to the international value of the peso if the price level in Mexico increases.
Demand $ (currency)
people who dont have dollars but want them (to buy something US made)
1. 2.
example (2 currencies)
3.
USD
Euro
Show and explain what would happen to the value of the USD and the value of the Euro if interest rates in Germany increased.
2 separate, correct explanations depending on if looking at it from US perspective or German perspective. Do not have to explain both.
1. 2.