The two graphs are indicating how inflation influencing the demand for and supply of exchange rate for Bangladesh currency and USA currency. Contrast between the two graphs and explain them accordingly.  b) Suppose spot rate of GBP (£) is 1.681 and 180 days of GBP (£) forward rate is $1.672. Calculate forward rate premium or discount for GBP (£).

Transcribed Image Text:

BD inflation T 1$ S So D Do Quantity of $ BD inflation T 1$ S So D Do Quantity of $

Answer rating: 100% (QA)

Graphs indicating the influence of inflation on the demand for and supply of exchange rates can help illustrate the relationship between inflation and ... View the full answer