explain and describe the differences in the respective BOP accounting frameworks. Moreover, the problem sets will cultivate your understanding of bid/ask spreads and how they are computed along with spot and forward rates.

BRIEF COMPARE AND CONTRAST ESSAY

In 500-750 words discuss the impact of at least two different macroeconomic factors can impact a currency's exchange rate. How can the actions of a country's government directly and indirectly impact the exchange rate?

PROBLEM SETS

1. The Bank of the Midlands' bid price for Canadiandollars is $.7938 and its ask price is $.8100. What is thebid/ask percentage spread?
2. British pound is $1.73. The expected spot rate one year from now is assumed to be $1.66. What percentage change does this reflect and has the British pound depreciated or appreciated against the U.S. Dollar?