Draw Design Layout References Mailings Review View Help Com https://www.fxcm.com/au/insights/howdoes- china-control-exchange rates/ a. An exchange rate is the of one country's currency in terms of another country's currency. (1 mark) Ans- b. An exchange rate is necessary because one country's currency is not in another country for international trade. (1 mark) C. The exchange rate is determined through the forces of ..and ...... . (1 mark) d. If the Australian dollar appreciates in value, what will happen to the price of exports (from the perspective of overseas buyers)? Similarly, if the Australian dollar appreciates, what impact will it have on the price of imports (from the perspective of Australian buyers)? (1 mark) e. Australia has had a floating exchange rate system since 1983. Under a floating exchange rate system, if the value of exports and the inflow of money from the country is greater than the value of imports and the outflow of money from overseas, what will happen to the exchange rate? Will it appreciate or depreciate? Explain your answer by using the relationship between demand and supply and the diagrams provided in part 6 below. (3 marks) English (Australia) Text Predictions: On Accessibility: Investigate Focus