台中央大学货币银行学MBchapter7幻灯片.pptVIP

Chapter 7 The Foreign Exchange Market Exchange rate: The price of one currency in terms of another. Foreign exchange market: The financial market where foreign exchange transactions take place and exchange rates are determined. We develop a modern view of exchange rate determination that explains recent behavior in the foreign exchange market. Foreign Exchange market Trade between countries involves the mutual exchange of different currencies. The trading of currency and bank deposits denominated in particular currencies takes place in the foreign exchange market. Transactions conducted i