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QUESTION

Please answer any one of the following questions in the next 20 mins. They are 10 marks each so please elaborate a little. And write it on your own without plagiarism. 1) Briefly explain the circumst

Please answer any one of the following questions in the next 20 mins. They are 10 marks each so please elaborate a little. And write it on your own without plagiarism.   

1) Discuss how the foreign exchange market works. Make sure you include a discussion of the behind-the-scenes workings and provide an indication of the size of transactions that can be involved.

2) Explain the reserve requirements method of conducting monetary policy, including a description of this method, the types of adjustments banks are likely to be required to make and the effects on the economy including the commercial bank actions that are likely to result.

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