Question (1):Due to the current pandemic situation it is very obvious that income level will go done in Japan and all around the world too. Assume that Japan income level goes lower relative to Indian Income level. What do you thing as a business student how this information going to affect the following,

i.Japan demanding Indian Rupee INR.

ii.Indian demanding Japanees yen.

iii.The supply of INR.

iv.The supply of Japanees yen.

v.The new value of Japanees yen.

vi.The new value of INR.

Note: Give you answer by simply saying Increase, Decrease or No change, along with one-line reason that why you choose this answer.

Question (2): Assuming the China wins the race of developing the first vaccine for Covid-19 and Afghanistan government had decided to purchase it from Chinese pharmaceuticals. As DAB policy maker I need your help in identifying the effect of this expectation on the currency exchange rate. What do you thing will be the effect of this information on,

i.Afghans demanding for Chinese RMB.

ii.Supply for RMB

iii.Supply of AFS

iv.Demand for AFS

v.Value of RMB

vi.Value of AFS

Note: Give you answer by simply saying Increase, Decrease or No change, along with one-line reason that why you choose this answer.

Question (3): Government of Afghanistan has called on a conference on "Strategies to improve Afghan Exports". Kardan University got invitation too from the Ministry and the BBA and BSc

Economics Departments has selected you to make a presentation suggesting how currency value can be used to improve exports. Develop a numerical example explaining if the value of AFS currency goes down how it can effect exports of Afghanistan. Also analyzed (Discuss) the long term impact of currency depreciation on the Economy.