国际金融练习ch02.docVIP

Chapter 2: The Market for Foreign Exchange I. Chapter Overview Chapter 2 begins with a description of the foreign exchange market, in particular the spot market. After presenting a table of exchange rates, the section explains currency appreciations and depreciations. It next shows how a pair of bilateral rates can be used to compute the cross rate for a given currency. The section also demonstrates how to compute the bid-ask spread and the bid-ask margin for a currency, and distinguishes between the nominal and real exchange rates. The next section defines the concept of an effec