CURRENCY FUTURES AND OPTIONS MARKETS
1. To describe the similarities and differences between currency
forward and futures contracts and markets.
2. To describe the advantages and disadvantages of currency
futures over currency forwards
CHAPTER 5 QUESTIONS
1. In a freely floating exchange rate system, if the current account is running a deficit, what are
the consequences for the nations balance on financial account and its overall BOP?
2.a. As the value of the U.S. dollar rises, what i
THE FOREIGN EXCHANGE MARKETS
ORGANIZATION OF THE FOREIGN EXCHANGE MARKET
THE SPOT MARKET
THE FORWARD MARKET
A. The Market:
the place where money denominated in one currency is
bought and sold with money denominated in another
The Balance of Payments and International
The International Flow of Goods, Services, and Capital
Coping With Current Account Deficits
The Balance Of Payments
THE INTERNATIONAL MONETARY SYSTEM
IMPORTANT CONCEPTS IN THIS CHAPTER
ALTERNATIVE EXCHANGE RATE SYSTEMS
CONTEMPORARY EXCHANGE RATE REGIMES
A BRIEF HISTORY OF THE INTERNATIONAL MONETARY
THE EUROPEAN MONETARY SYSTEM
RECENT CURRENCY CRISES
THE DETERMINATION OF EXCHANGE RATES
What is the equilibrium exchange rate?
How to calculate the percent appreciation-depreciation of a
What factors affect exchange rates in a floating rate system?
Why and how do central