What are the two assumptions of covered interest parity

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Assignment: International Economics

I need all of these answered apa format, references, and plagiarism checker included. Please have a firm grasp of American English.

1. Describe the key factors in foreign exchange market. Explain risk and liquidity as they relate for foreign exchange market.

2. What is covered interest parity? What are the two assumptions of covered interest parity? How do investors use covered interest arbitrage to maximize their investment returns?

3. Analyze the effect of the political economy on trade agreements and policy. Analyze the various countries to which the United States actively trades or has an embargo upon. How does this fluctuate with the political economy? Use contemporary examples or examples from history to illustrate your point.

4.As of March 2013, the U.S. deficit balance was $16 trillion. Why do think the U.S. government should be concerned? Should the government be equally concerned, if it were a surplus?

Reference no: EM131508861

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