Explain how each of the following will affect the price of the US dollar:

a. The number of foreign tourists heading to Disneyland in California increases.

b. American consumers decide to buy more French wine.

c. Japanese investors decide to purchase more US stocks and bonds.

d. Prices in the United States begin to rise more rapidly than prices in the rest of the world.

Explain how a firm or an individual can use forward exchange rates to reduce or eliminate foreign exchange risk.

What are the main determinants of demand for a nation's currency in the foreign exchange market?

Explain how a flexible exchange rate system operates. What are the advantages and disadvantages of this model?

What were the key elements of the post-World War II international monetary system that was put together at Bretton Woods?

What factors led to the breakdown in the fixed exchange regime between 1968 and1972?

What role does the IMF play in the international economy?