Analyze the impact of each of the following scenarios on USD/SGD. Your answer should include a diagram of foreign exchange market with a brief explanation. (Hint: The diagram should be plotted with USD per SGDon the y-axis, and Quantity of SGDon the x-axis)

1. The U.S. Federal Reserve lowers interest rates through monetary easing, while Monetary Authority of Singapore keeps its interest ratesconstant.

(4marks)

1. Singaporeans developed an affinity forAmericanproducts. (4marks)

After signing a bilateral trade agreement, the U.S. government reduced import quotas onSingapore'sproducts.