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(4)(a)Identify the factors which affect equilibrium exchange rate in the foreign exchange market. Use appropriate graphical illustrations to analyze how three of these factors affect

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(4)(a)Identify the factors which affect equilibrium exchange rate in the foreign exchange market. Use appropriate graphical illustrations to analyze how three of these factors affect movements in the external value of the euro relative to the U.S dollar. (b)Briefly explain the following quote: "There is a growing forward market for emerging currencies, but because of the thinness of this market and its lack of liquidity, the bid-ask spreads are much higher

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