International Finance Analyzing a monetary system, writing homework help

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Description

Select a foreign country and analyze its monetary system. Research the country’s monetary system using at least five scholarly sources. Your analysis should be an eight to ten page paper formatted according to APA style guidelines.

Address the following aspects in your paper:

  • Analyze the evolution of the country’s monetary system, including the impact of any fiscal monetary and trade policies.
  • Describe the major components of the monetary system, including organizations and financial institutions.
  • Describe the currency exchange rates and any significant impacts on the exchange rates.
  • Analyze the issues around economic exposure, transaction exposure, and translation exposure.
  • Recommend to investors whether they should buy or sell futures or options in that currency.

Writing the Final Paper

The Final Paper:

  • Must be eight to ten double-spaced pages in length, not counting cover and reference pages, and formatted according to APA style.
  • Must include a title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must begin with an introductory paragraph that has a succinct thesis statement.
  • Must address the topic of the paper with critical thought.
  • Must end with a conclusion that reaffirms your thesis.
  • Must use at least five scholarly sources.
  • Must document all sources in APA style.
  • Must include a separate reference page, formatted according to APA style.

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Explanation & Answer

Here you go hun, let me know if you need any revisions!

Running head: THE MONETARY SYSTEM OF CANADA

The Monetary System of Canada
Instructor
Class
Date
Name

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THE MONETARY SYSTEM OF CANADA

2

Introduction
A monetary system is a set of rules written, unwritten that a nation uses to do business with
one another. A nation has its own currency and carries out trade and hence has transactions that
have to be made in an orderly system. A well-working framework advances monetary development
and empowers success through the effective allotment of assets, specialization underway, full scale
financial and budgetary dependability through rolling out improvements in return rates and the
capital streams (Christensen, I., & Dib, A., 2014). For a nation to be effective in monetary system
it has to deliver in both domestic prices and making timely adjustments to shocks and structural
changes.
The Monetary System of Canada
Canada’s monetary system is similar to that of the United states. The unit is the dollar
which is 22.22 grains of pure gold. In Canada, the gold coins of the united states are legal tender.
In Canada, the paper currency includes the bank notes and the dominion notes. Currency was first
introduced in Canada in early 1660s when coins were brought by the French colonists (Crow, J.
W. 1988). Canada has an extensive background regarding its currency because its economy has
changed over years. The government has reinforced to fiscal consolidation since 1988 whereby it
first introduced debt repayment plan in the federal budget which aimed at keeping the federal
government debt at GDP ratio. It has also enhanced prudent economic planning assumptions that
have been replaced by the economic assumptions of both growth and interest forecast and annual
contingency (Christensen, I., & Dib, A., 2014).
In Canada, fiscal monetary changes have been implemented in different methods. In 1991,
the government and the bank of Canada adopted an inflation targeting regime which aimed at

THE MONETARY SYSTEM OF CANADA

3

restoring the fiscal balance. Canada has had a long and varying experience with the foreign
exchange regimes which have ranged from the rigidly fixed exchange rates that have existed as an
essential constituent in the gold standard because gold was a common international currency to the
independent floating rates (Christensen, I., & Dib, A., 2014). Canadian experience on the
international gold standard has threatened the stability of the Canadian financial system. Canada
trade policies since 1966 have been a major determinant in the economic performance of Canada.
It has consolidated many of the economic trends in its 1966 Trade policy reviews Canada has had
a trade policy department that has ensured that their cultural trade policies are in agreement with
international trade and are mandated in the world trade organization WTO (Christensen, I., & Dib,
A., 2014). They have been recognizing cultural diversity as a source of creativity and innovation
for the economic development.
Canada has followed a multi-track policy approach for investment relations and
international trade where by the multilateral arrangements are intended to reinforce the roles.
Canada also gives paramount importance for management of relations...


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