What determines exchange rates

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Reference no: EM132010355

1. Define Exchange Rate

2. What determines exchange rates?

3. Discuss the operation of the foreign exchange market and the nature and operation of currency arbitrage

4. How would a fall (depreciation ) in the New Zealand dollar affect the New Zealand economy? if the New Zealand dollar were to fall (depreciate ) further, should the Government and the Reserve Bank do anything about it? Justify your answer.

Reference no: EM132010355

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