Fiscal Policy

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poebja1977

Business Finance

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Deliverable Length: 900 - 1,100 words

Write a paper that addresses the following issues:

  • What is the importance of exchange rates?
  • Who benefits and who loses when a country’s currency appreciates?
  • Who benefits and who loses when a country’s currency depreciates?
  • In the long run, what are the major factors that impact exchange rates?
  • Understanding central banks impact exchange rates, select three central banks and demonstrate/ explain how this occurs.

Include at least 3 professional references and follow APA formatting.

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Explanation & Answer

Attached.

Outline

Fiscal policy Essay

Issues Addressed

I.

The importance of exchange rates?

II.

Who benefits and who loses when a country’s currency appreciates

III.

Who benefits and who loses when a country’s currency depreciates

IV.

, what are the major factors that impact exchange rates In the long run

V.
VI.

Understanding central banks impact exchange rates
References


Running head: FISCAL POLICY

1

Fiscal Policy
Student’s Name

Institutional Affiliation

Instructor

Date of Submission

FISCAL POLICY

2

The term exchange rates refer to the rate between two currencies and the rate at which
they exchange, one into the other. Friedman (2016) asserts that exchange rate determines the
value of one currency when compared to the other. It determines, for example, the value of a US
dollar when converted into another currency, for instance, the Japanese Yen. It determines how
foreign countries relate to each other regarding conversion from one term into the other. These
rates are determined by different factors that play in the foreign exchange market and where
different players, both buyers, and sellers interact in the transactions which experience either the
increase or decrease of the value of the currency. The buyers buy at the buying rate which is the
rate at which they purchase a currency while the selling rate marks the rate at which that
currency is sold.
It is notable that billions of pounds, doll...


Anonymous
Excellent resource! Really helped me get the gist of things.

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