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What are the five major factors that influence foreign exchange rates? What are the differences between a floating exchange rate policy and a fixed exchange

    1. What are the five major factors that influence foreign exchange rates?
    1. What are the differences between a floating exchange rate policy and a fixed exchange rate policy?
    1. Describe the IMFs roles, responsibilities, and challenges.
    1. Describe the three primary types of foreign exchange transactions made by financial companies.
    1. Why is the strength of the U.S. dollar important to the rest of the world?
    1. How would you describe the theory of purchasing power parity (PPP)?
    1. What is the relationship between a countrys current account balance and its currency?
    1. How is the phenomenon of capital flight an example of the bandwagon effect or herd mentality?
    1. What concepts must a savvy manager understand about currencies to do international business successfully?

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