Economics

a. Exchange rate systems vary in the degree to which a country's central bank controls its currency's exchange rate. Many countries allow their currency to float, yet periodically engage in interventions to control the exchange rate. Explain why and how a central bank intervenes to control the currency exchange rate. Be sure to explain the impact of such intervention on the economy including interest rates, inflation, and balance of trade.

b. How do you think accounting irregularities affect the pricing of corporate stock in general? From an investor's viewpoint, how do you think the information used to price stocks changes in responding to accounting irregularities?