Assignment On Transaction Effects On Demand & Supply For Pounds

Added on -2019-09-25

| 17 pages
| 1998 words
| 35 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 4 of 17 pages

FOREIGN EXCHANGE
Foreign Exchange
Table of Contents
1.......................................................................................................................................................2
2.......................................................................................................................................................4
3.......................................................................................................................................................8
4.....................................................................................................................................................13
5.....................................................................................................................................................15
6.....................................................................................................................................................16
References......................................................................................................................................17
1
Foreign Exchange
1. Indicate how each of the following transactions affects the private demand/supply for
pounds sterling in the $-£ market. Write "INC" for an increase, "DEC" for a decrease,
"APPREC" for appreciation, "DEPREC" for depreciation, and "X" for no change.
Transaction Demand Supply Price Price
for £ of £ of £ of $
Increase in number of
British tourists to U.S. X INC Deprec Apprec
Decrease in number of
U.S. tourists to U.K. DEC X Deprec Apprec
Increased US demand for
services of British
insurance companies INC X Apprec Deprec
Increased US demand for
2
Foreign Exchange
British gov't bonds INC X Apprec Deprec
Rumor of defects in
Rolls Royce cars DEC X X X
Incentives for British
direct investment in US X INC Deprec Apprec
Decreased British
purchases of U.S. corn X DEC Apprec Deprec
3

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Students who viewed this