Analysis of the Foreign Exchange Market

Purpose of Assignment The foreign exchange market is an international monetary system that among several of its functions, converts one country’s currency into that of another. Understanding the foreign exchange market is an important dynamic in international trade and investment. It is, therefore, a benefit to the business student, via this assignment, to fully comprehend its functions. Assignment Steps Develop a minimum 700-word analysis to include the following aspects of the foreign exchange market: •Discuss the two main functions of the foreign exchange market. •Analyze, in detail, the relationship between money supply and inflation. •Describe the difference between a freely convertible currency and a non-convertible currency. •Evaluate the technology risks associated with the functions of the foreign exchange

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