Question: An important thing to remember about foreign exchange rate determination is that parity conditions, asset approach, and balance of payments approaches. Discuss the main factors

An important thing to remember about foreign exchange rate determination is that parity conditions, asset approach, and balance of payments approaches. Discuss the main factors that impact exchange rate to change in the light of each approach. You may provide some real-life example to elaborate your answer? (8 points) (CL06)

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