Find Flashcards
Why It Works
More
Educators
Businesses
Academy
About

Brainscape's Knowledge Genome^TM

Browse over 1 million classes created by top students, professors, publishers, and experts.

Entrance Exams
Professional Certifications
Foreign Languages
Medical & Nursing
Science
English
Humanities & Social Studies
Mathematics
Law
Vocations
Health & Fitness
Business & Finance
Technology & Engineering
Food & Beverage
Fine Arts
Random Knowledge

See full index

L2 14 Currency Exchange Rates: Determination and Forecasting > h explain approaches to assessing the long-run fair value of an exchange rate; > Flashcards

h explain approaches to assessing the long-run fair value of an exchange rate; Flashcards

L2 14 Currency Exchange Rates: Determination and Forecasting (16 decks)

A calculate and interpret the bid–ask spread on a spot or forward foreign currency quotation and describe the factors that affect the bid–offer spread;

b identify a triangular arbitrage opportunity, and calculate its profit, given the bid–offer quotations for three currencies;

c distinguish between spot and forward rates and calculate the forward premium/ discount for a given currency;

d calculate the mark-to- market value of a forward contract;

e explain international parity relations (covered and uncovered interest rate parity, purchasing power parity, and the international Fisher effect);

f describe relations among the international parity conditions;

g evaluate the use of the current spot rate, the forward rate, purchasing power parity, and uncovered interest parity to forecast future spot exchange rates;

h explain approaches to assessing the long-run fair value of an exchange rate;

i describe the carry trade and its relation to uncovered interest rate parity and calculate the profit from a carry trade;

j explain how flows in the balance of payment accounts affect currency exchange rates;

k describe the Mundell–Fleming model, the monetary approach, and the asset market (portfolio balance) approach to exchange rate determination;

l forecast the direction of the expected change in an exchange rate based on balance of payment, Mundell–Fleming, monetary, and asset market approaches to exchange rate determination;

m explain the potential effects of monetary and fiscal policy on exchange rates;

n describe objectives of central bank intervention and capital controls and describe the effectiveness of intervention and capital controls;

o describe warning signs of a currency crisis;

p describe uses of technical analysis in forecasting exchange rates.

Key Links
Subjects
Company
- About Us
- Earn Money!
- Academy
- Swag Shop
- Contact
- Terms
- Podcasts
Find Us

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions