LevelUp CFA

Currency Exchange Rates: Determination and Forecasting

🌍 Economics - Reading 1

Overall Progress

0 / 8 LOS

evaluate the effects of exchange rates on countries’ international trade and capital flows.

describe the foreign exchange market.

calculate and interpret currency cross-rates.

calculate and interpret a forward exchange rate.

compare spot and forward exchange rates and describe the conditions for interest rate parity.

explain the Mundell–Fleming model.

explain the monetary and the asset market/portfolio balance approaches to exchange rate determination.

describe exchange rate management and intervention policies.