Please follow the instructions and answer every bit of it. Please reference your answer to the textbook & online research. Textbook name is Money, Banking & Financial System. 3rd edition by Anthony Patrick O and Hubbard R.

Statement of the discussion topic "The financial system is to the market economy what the heart is to the human body." The exchange rate between two currencies at a specific time determines the number of units of one currency needed in order to obtain one unit of the other currency. Such exchange rate is never fixed but can fluctuate depending on the interaction of forces of supply and demand of the two currencies. The fluctuations can consist of an increase in value of one currency (i.e. appreciation) or a decrease in value of another currency (i.e. depreciation). Does the U.S. stand to gain or lose when the US dollar appreciate? 1. State 2 question on Module 2. 2. Discuss the above statement, that is, post at least one original thread that reflects your view on the statement/issue (i.e. highlight the pros and cons). Also, react/reply to at least two postings from other students. Make sure you support your points using economicreasoning and more so the concepts and methods of Module 2