Problem
1. What is a foreign exchange rate? Provide a few examples.
2. How is the exchange rate determined in a freely floating rate system?
3. Who demands Japanese yen? Who supplies yen?
4. Practical Application: Foreigners are buying up hundreds of billions of dollars a year in American assets. In what ways should this be a matter of concern to Americans?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.