How two countries foreign exchange market linked together, International Economics

Assignment Help:

Explain how the money markets of two countries are linked through the foreign exchange market.

Answer:  The financial policy actions by the Fed affect the U.S. interest rate altering the dollar/euro exchange rate that clears the foreign exchange market.  The European System of Central Banks (ESCB) is able to affect the exchange rate by changing the European money supply and interest rate.

 


Related Discussions:- How two countries foreign exchange market linked together

Real income or economic welfare of the united states, Q. The Brazilian fir...

Q. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers. Is this bad or good for the real income or economic welfa

Why are prices of factors of production not equalized, Q. Why are prices o...

Q. Why are prices of factors of production not equalized? Answer: Again this statement may not or may be argued to be true. On the other hand, the growth and large volume in

Who are the main actors in the international capital market, Q. Who...

Q. Who are the main actors in the international capital market? Answer: 1. Commercial banks. 2. Corporations. 3. Non-bank financial institution

Can currency boards make low-inflation policies credible, Q. Based on the c...

Q. Based on the case study, answer the following question: Can currency boards make low-inflation policies credible? Answer: Currency boards have the power to bring in anti-

Wate is the national incom of india aims & objective., wate is the nationa...

wate is the national incom of indi aims & objectives

International monetary system, Q. How did the international monetary syste...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the gold standard era (1870 - 1914)? Answer: London was the hub of t

Modern theory of trade, #question.explain me Hecksher OHLIN theory of inter...

#question.explain me Hecksher OHLIN theory of international trade in simple english

Balance of payments deficits, Q. Refute the claim by mercantilists who clai...

Q. Refute the claim by mercantilists who claimed that without severe restrictions on international trade and payments, a country might find itself impoverished and without an adequ

Domestic investment rates, Q. Explain why, according to Feldstein and Horio...

Q. Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates diverge widely from saving rates. Answer: The decisions of corporations t

#title.Economic indicators, I want to make a report on Econmomic indicators...

I want to make a report on Econmomic indicators in financial market

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd