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1. Briefly summarize the factors the account for exchange rate fluctuations. 2, How can the spot nd forward rates in Currency be used to explain

1. Briefly summarize the factors the account for exchange rate fluctuations.

2, How can the spot nd forward rates in Currency be used to explain derivative relationships and hedging in general.

3. Similar to question one, discuss the issue of capital flows as they relate to the value of a counties currency and economic stability.

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