1. what is meant by the foreign exchange market? where is it located?
2. what is meant by t...
1. what is meant by the foreign exchange market? where is it located?
2. what is meant by the forward market? how does it differ from the spot market?
3. the supply and demand for foreign exchange are considered to be derived schedules. explain.
4. explain why exchange rate quotations stated in different financial centers tend to be consistent with one another.
5. who are the participants in the forward exchange market? what advantages does this market afford these participants? what explains the relationship between the spot rate and the forward rate? what is the strategy of speculating in the forward market? in what other ways can one speculate on exchange rate changes?
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