Question: What is the difference between transaction demand, speculative demand, and autonomous transactions by central banks, the World Bank, and the IMF in the foreign exchange

What is the difference between transaction demand, speculative demand, and autonomous transactions by central banks, the World Bank, and the IMF in the foreign exchange markets? Which of these factors determines the long-term quarterly trends in exchange rates?

Step by Step Solution

★★★★★

3.34 Rating (181 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Transaction demands represent currency transactions necessitated by the flow of tra... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

208-B-E-M-E (570).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

What is the difference between demand cleaning and precleaning?

What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of...

What is the difference between an offer for a unilateral contract and an offer for a bilateral contract? Why might that difference be important to understand?

What are the difference between transaction demand, speculative demand, and autonomous transactions by central banks, the World Bank, and the IMF in the foreign exchange market rates? Which of these...

Part 1: Recent Economic and Financial Developments Monetary Policy Report submitted to the Congress on February 7, 2020, pursuant to section 2B of the Federal Reserve Act Domestic Developments The...

Suppose government spending rises in Boversia, shifting the AE curve outward. The central bank would like to keep both output and the real exchange rate constant. How can policymakers accomplish...

1.Suppose government spending rises in Boversia, shifting the AE curve outward. The central bank would like to keep both output and the real exchange rate constant. How can policymakers accomplish...

Why is Brazil different and how? What effect did the inflation have on people's behavior? Why was there little or no lending at any interest rate fixed for more than one day? What was wrong with...

9) In which one of the following systems would it be least difficult to quantify the currency risk? A) pegged exchange rate system B) currency board C) target zone system D) floating exchange system...

Read carefully, answer correctly (a) An international investor who expects that, in the future, a British pound() will buy $1.60 in U.S. currency instead of its current exchange rate of $1.50 may...

James Manufacturing had the following information available for July: Flexible Budget Variance Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative...

5. Aradio can tune into any station in the 7.5 MHz to 12MHz band. What is the corresponding 24 wavelength band?

Assume the real rate of interest is 3 . 0 0 % and the inflation rate is 4 . 0 0 % . What is the value today of receiving 1 1 , 3 4 7 . 0 0 in 1 4 . 0 0 years?

Reconsider the Littletown Fire Department problem presented in Section 9.4 and depicted in Figure 9.11. Due to maintenance work on the one-mile road between nodes A and B, a detour currently must be...

Determine whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand duopoly: a. Neither manager expects her own output decision to impact the other...

Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 100 Q, and the firms cost function is C(Q) = 2Q. Determine the firms equilibrium...

Ford executives announced that the company would extend its most dramatic consumer incentive program in the companys long historythe Ford Drive America Program. The program provides consumers with...

a. Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 7.4%. Now, with 8 years left until the maturity of the bonds, the company has run into...

What is the NPV of the following set of cash flows (below) at a discount rate of zero percent? NPV= __________ How do you calculate this? What is the NPV if the discount rate is 10 percent? NPV =...

Read the article from https://www.quora.com/What-is-the-difference-between-packet-firewall-stateful-firewall-and-application-firewall Explain the difference between packet firewall, stateful firewall...