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QUESTION

Exchange Rates and International Investing 2.5

Many factors affect currency exchange rates. Determine the effect of the following factors on changes in currency exchange rates, providing examples using the rate of exchange between two currencies. How might this information be used if you were travelling to a foreign country?

Each bullet is its own paragraph and response

  • Inflation
  • Interest rates
  • National debt
  • Unemployment
  • Money supply
  • Political stability
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