International Business and Money Summary (all-inclusive) Questions and Answers 2023

What affects supply & demand of currency - -Export/import Capital Inflow/outflow Inflation Real/nominal interest rats Political/economic risk Expectations -Interbank market - -Banks dealing with other bank in large volumes; Big international bank the deal with large quantities (millions a day in foreign currency) -Brokers - -Professionals that help individuals get access to foreign currency; help people trade foreign currency -Central banks - -National bank (federal reserve) buy and sell foreign currency; For -Spot market - -exchange rates stated for transactions that require immediate delivery (within two days) -Direct quote - -Number of units the domestic currency needs to get one unit of foreign currency; Ex. -Ex. we are in U.S... how many dollar does it take to get one euro -Indirect quote - -# of units of foreign currency needed to get one unit of domestic currency Ex. We are in Germany.. How many dollars does it take to get one euro