Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question: 4 a. Explain the govt. direct mechanisms to intervene in the foreign exchange market to control the exchange rate movements of a country, justify
Question: 4 a. Explain the govt. direct mechanisms to intervene in the foreign exchange market to control the exchange rate movements of a country, justify your answer in the context of Bangladesh in the viewpoints of 2011-12 and 2019 significant depreciation of BDT values with USD. b. Currency Value Bid price Ask price Value of British pound in US $ 1.15 $1.17 dollar Value of Newzealand dollar $.30 $.315 in us dollar Value of British pound in NZS 3.30 NZS 3.45 Newzealand dollar Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage and compute the profit and ROI from this strategy if you had $1,000,000 to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started