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describe the ways in which cryptocurrency is exchanged as compared to the US dollar
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- what are some of the ethical pros and ethical cons concerning a conversion to Central Bank Digital Currency?What is arbitrage? Indicate the forms of arbitrage that we can apply to the foreign exchange market.Explore the concept of arbitrage on the currency exchange markets and critically evaluate with examples.
- What are some of the transactions or activities that results in the demand of foreign currency?What causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?Which of the following is a matured money market instrument widely used in the USA, Europe and Asia where both cash and securities are the motivators? a. Commercial Papers b. Treasury Bills c. Repurchase Agreements d. Certificate of Deposits
- Explain how changes in interest rates are likely to affect exchange rates.Discuss well about the exchange Rate Mechanisms of currencies; what does it mean “Independent Float” or “Pegged to another currency” mean? Give example for each.Describe techniques for “hedging” againstlosses from fluctuations in exchange rates.