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1. Answer the following questions (16 Points) 1. Identify two factors that account for changes in a currency's value a.k.a. exchange rate) over the long
1. Answer the following questions (16 Points) 1. Identify two factors that account for changes in a currency's value a.k.a. exchange rate) over the long run. Explain how these factors have an impact on the exchange rate. 2. Suppose you trade dollars and yens for a bank that has branches in San Francisco and Tokio. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current yen-per-dollar exchange rate in San Francisco is eSF =147.1592/$, while in Tokio, it is eTK-147.1802/$. How can you make a profit? How much money will you make if you have 10 million dollars
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