abhishreshthaa
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Factors Effecting Exchange Rates
Balance of Payments -
Fiscal & Monetary Policy -
Focus on Trade Accounts -
Central Bank Intervention
Inflation Rates
Interest Rates
Balance of Payments -
- A record of all transactions made between one particular country and all other countries during a specified period of time.
- BOP compares the dollar difference of the amount of exports and imports, including all financial exports and imports.
- A negative balance of payments means that more money is flowing out of the country than coming in, and vice versa.
Fiscal & Monetary Policy -
- Government spending policies that influence macroeconomic conditions.
- These policies affect tax rates, interest rates and government spending, in an effort to control the economy.
Focus on Trade Accounts -
- An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.
- An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy
Central Bank Intervention
Inflation Rates
Interest Rates