Macro: Unit 5.2 — The Foreign Exchange Market
foreign exchange trading January 17th. 2022, 9:55amHey Everyone! I’m Mr. Willis, and You Will Love Economics!
In this video, I will:
– Explain how exchange rates work
– Discuss currency appreciation and depreciation and how it impacts the price of imported
and exported goods
– Practice calculating currency conversion at a given exchange rate
– Define foreign exchange demand
– Explain the factors that contribute to the inverse relationship between exchange rates
and currency demanded
– Define foreign exchange supply
– Explain the factors that contribute to the positive relationship between exchange rates
and currency supplied
– Identify the 4 components of foreign exchange supply and demand
– Use graphs to analyze how a change in currency demand will impact exchange rates
– Use graphs to analyze how a change in currency supply will impact exchange rates
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