There are three parts to Question 24. All questions here must be answered. Please clearly outline which question you are answering by clearly labelling it as a, b or c.

Q24a) How can government intervention affect the exchange value of a currency? Will the currency generally rise or fall if a government sells assets to foreigners?

Q24b) What is the likely impact of domestic currency exchange rates decreasing on the national balance of payments? Define 'balance of payments' in your answer and identify its key accounts.

Q24c) Define and distinguish between hedgers and speculators operating in currency markets.