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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.
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)
- The U.S. Federal Reserve lowers interest rates through monetary easing, while Monetary Authority of Singapore keeps its interest ratesconstant.
(4marks)
- Singaporeans developed an affinity forAmericanproducts. (4marks)
After signing a bilateral trade agreement, the U.S. government reduced import quotas onSingapore'sproducts.
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