(1)Find and Canadiaite down direct and indirect quotation between the U.S. dolla
ID: 2790327 • Letter: #
Question
(1)Find and Canadiaite down direct and indirect quotation between the U.S. dollar and Canadian dollar from the table below. 1.30 133 0.07 0.01 0.19 052 0.01 144 1.69 101.74 112 68 132.49 104.16 541 18.82 20.84 24.51 19.27 s8 108 1.27 0.77 oas 78.37 14.50 0.75 079 0.04 0.0159 1.18 092005 0.01 0.70 1.11 1.30 1.02 0050.01 on United States (2) The figure shows movements in the trade-weighted US dollar exchange rate from 1994 through 2016. Explain why the US dollar exchange rate was so high from 2012 till 2016 with responds to shifts in demand and supply in international financial market. 2004 2010 2012 2914 20 19e 200Explanation / Answer
1.
Direct Quotation means one unit of foreign currency in domestoc currency and in indirect quotation, one unit of domestic currency in term of foreign currency. So, direct and indirect quotation between US dollar and Canadian dollar is get from mention table.
So direct quotation Between US dollar and Canadian dollar = $0.77 per canadian dollar.
Indirect quotation = CAD$1.30 per US dollar.
2.
Demand of US dollar has increased from year 2012 to 2016 and so exchnage rate of US dollar has increases from 2012 to 2016. Major reason of increase in demand is becasue of petroleam. all petroleam are traded in term of US dollar and in last few year demand of petrolean has increase in developing countries and so demand of US dollar has also increase.
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