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Foreign Exchange Markets Summary

Foreign Exchange Markets Summary

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Title: Foreign Exchange Markets Summary

Essay Details:

Subject: Business

Author: Mary W

Date: February 22, 2015

Level: University

Grade: A

Length: 4 / 1056

Essay text:

Similarly, a decrease in the dollar/yen exchange rate would imply an appreciation of the dollar and a depreciation of the yen. The world has a few major foreign currency exchange markets. These are the freely floating exchange rates, fixed rate currency exchange markets, and managed or float, also known as dirty. Each one has there advantages and disadvantages and we will cover these issues now. The freely floating exchange rates tend to respond quickly to shifts in the currency market. Therefore, it's easier to watch and predict. Because of this quick response time, excess demand or excess supplies are quickly eliminated by rate adjustments in the currency market...

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