Finance Theory. Please explain with using point form and in depth so i can remember better. Thankyou (NO CHATGPT Answer pls)

Q1)

A) Explain how differential in inflation, interest rate and income between two countries and with government control can determine the exchange rate of a currency with another currency.

B) Leading and lagging strategies involve adjusting the timing of a payment request for disbursement to reflect expectations about future currency movements. Discuss how some MNCs use this strategy to hedge their transaction exposures and why do some MNCs choose not to hedge their transaction exposures? Discuss this with some real life examples.

C) Discuss the practicality of the following theories with some real life examples: i. Purchasing Power Parity ii. Interest Rate Parity