Different types of exchange rates.
- What are three of the possible choices that an exporter can make (in terms of currency) for a specific transaction?
- Explain the three different types of exchange rates. Find the three exchange rates for a currency of your choice and explain the values you find.
- Explain three different types of currencies. Give an example of each.
- Choose two of the theories of exchange rate determination and explain them.
- What does it mean for a firm to retain its currency fluctuation risk in a transaction?
- There are three types of hedges that a firm can use to protect itself against transaction exposure. Choose one of them and explain.