1-How can a country become or be a debtor Nation or a creditor nation? And what problems does that cause for those countries ?
2-Explain what it’s purchasing power parity and the law of one price.?
3-Explain to me what a foreign exchange option is.
4-When we have a free market system or a free a floating currency a float floating currency.
How is the exchange rate determined in the short run and the long run?
5-How is it that the united states became a debtor nation ? and how does the us measure its international investment
6-What difference between a Futures market and a forward Market. and can you do a foreign exchange trade in the future market ?
7-What does the current account deficit mean? What does the current account surplus mean?
Essay question.
Explain in details
1-The asset market approach when it comes to to exchange rate determination . What factors are important in this approach? and why ?
2-Tell me what a spot rate transaction is? and how that spot rate transactions difference in the forward rate transaction. And a currency swap transaction.
3-What effect or repercussions to United States if the dollar was not the Global de facto Currency, what does that mean to United States from the standpoint of our balance of payments and economic growth .
