ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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imposing foreign exchange barriers
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imposing foreign trade barriers
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intervening (buying and selling currencies) in the foreign exchange markets
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affecting micro variables such as inflation, interest rates, and income levels
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Detailed explanation-1: -This paper focuses on an accounting framework that is useful for distinguishing between the effects on exchange rates of four separate factors: relative price levels, balances of payments, interest rates and risk.
Detailed explanation-2: -There are four main types of exchange rate regimes: freely floating, fixed, pegged (also known as adjustable peg, crawling peg, basket peg, or target zone or bands ), and managed float.
Detailed explanation-3: -Using the OLS regression estimation and Granger causality test, the results show that GDP growth, inflation and interest rate have a strong influence on the exchange rate for both the developed and developing countries. Moreover, we also used the panel data analysis.
Detailed explanation-4: -Inflation. If a country has low inflation rates consistently, its currency value typically rises. Interest Rates. If a country has a high-interest rate, lenders have the chance to earn more. Deficits. Debt. Import-Export. 17-Aug-2021