三个有关外汇的英文作业希望帮忙解答1Iftheexchangerateisdefinedasthedomesticcurrencypriceofoneunitofforeigncurrency,willtheexchangerateriseorfallwhenthedomesticcurrencydepreciates?Explainyouranswer.2What

Question

三个有关外汇的英文作业 希望帮忙解答
1If the exchange rate is defined as the domestic currency price of one unit offoreign currency, will the exchange rate rise or fall when the domestic
currency depreciates? Explain your
answer.

2What major items in the balance of payments give rise to an inflow of foreignexchange? What two items give rise to an
outflow of foreign exchange?

3Explain how an increase in the expected rate of return on foreign currency deposits
(expressed in domestic currency) will affect the exchange rate.

Answer 1

1. The exchange rate will rise. Intuitiveley, when the domestic currrency depreciates, the deomestic currency dominated price of foreign currency rise. 2. The increase in the Current items gives ris...