What action foreign central banks can be utilized

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Reference no: EM132652223

Macroeconomic factors were mentioned above, to reiterate:

You need to know how changes in factors (such as inflation, GDP, interest rates, quotas, tariffs, etc.) in the U.S. relative to a foreign currency will affect the demand for the foreign currency, the supply of the foreign currency and the final effect on the value of that foreign currency in terms of the dollar.

These are the relationships described by supply/demand curves

Question 1: What actions by U.S. and foreign central banks can be utilized to adjust currencies? How do these actions work and what is the effect?

Know the expected effects of a strong vs. weak dollar in terms of the U.S. economy (inflation, unemployment, exports, imports, U.S. competitiveness, etc.)

Reference no: EM132652223

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