“FOREX Graphing Practice”

1 / 7

# “FOREX Graphing Practice” - PowerPoint PPT Presentation

“FOREX Graphing Practice”. 1. Assume interest rates in the United States are currently lower than interest rates in Japan. a. Show and Explain how this situation affects: i . international value of the dollar. S of \$ shifts right b/c….

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

## PowerPoint Slideshow about '“FOREX Graphing Practice”' - moriah

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

1. Assume interest rates in the United States are currently lower than interest rates in Japan. a. Show and Explain how this situation affects: i. international value of the dollar

S of \$ shifts right b/c…..

Americans will S more \$ in order to exchange for Yen in order to invest (save) in Japan

P of Dollar in Euros

Yen

Yen

Pe

Results? ….

Value of \$ depreciated

a. Show and Explain how this situation affects: ii. international value of the yen

D of Yen shifts right b/c…..

Americans will D more Yen in order to invest (save) in Japan

P of Yen in Dollars

Dollars per Yen

Pe

Results? ….

Value of Yen appreciated

Yen

b. What happens to the US Nx

• As the value of the \$ depreciates, US Nx begin to rise

c. What happens to the Japanese Nx

• As the value of the Yen

appreciates, Japan’s Nx

begin to fall

1. Assume interest rates in South Korea are currently higher than interest rates in Australiaa. Show and Explain how this situation affects: i. international value of the South Korean Won

D of Won shifts right b/c…..

Aust. will D more Won in order to invest (save) in S.Korea

P of Dollar in Euros

P of Won in Dollars

Yen

Dollar

Per

Won

Pe

Results? ….

Value of Won appreciated

Won

ii. international value of the Aust. dollar

S of \$ shifts right b/c…..

Australians will S more dollars in order to exchange for Won in order to invest (save) in S. Korea

P of Dollar in Euros

Yen

Won

won

Pe

Results? ….

Value of \$ depreciated

b. What happens to the South Korean Nx

• As the value of the Won appreciates, S.K. Nx begin to fall

c. What happens to the Australian Nx

• As the value of the dollar depreciates, Aust. Nx begin to rise