1. Based on the case study, A Tale of Two Dollars, explain why errors in the currency market can be more costly to the Toronto Blue Jays baseball team than errors in the field.
2. Explain what a vehicle currency is. Why is the U.S. dollar considered a vehicle currency?
3. What are the factors affecting the demand for foreign currency?
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4. What is the interest parity condition?
7. Discusses the effects of a rise in the dollar interest rate on the exchanger rate.
8. Discusses the effects of a rise in the interest rate paid by euro deposits on the exchanger rate.