Problem
1. After an unanticipated dollar appreciation has occurred, what would you recommend a company like Cummins Engine do with its strong domestic currency?
2. What is the difference between transaction demand, speculative demand, and autonomous transactions by central banks, the World Bank, and the IMF in the foreign exchange markets? Which of these factors determines the long-term quarterly trends in exchange rates?
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.