Assume that Australia trades mostly with two countries only, the United States and theUnited Kingdom, such that 70 per cent of the trade is conducted with the United States, 25per cent with the United Kingdom, and 5 per cent with the rest of the world. The exchangerates of the Australian dollar at two points in time, 0 and 1, are as follows: 0 1AUD/USD 1.3541 1.7724AUD/GBP 2.1533 2.5692(a) Calculate the exchange rates in indirect quotation from an Australian perspective.(b) Calculate the percentage rates of depreciation or appreciation of the Australiandollar against the two currencies. Comment on your results.(c) Calculate the exchange rate relatives, using 0 as a base period.(d) Calculate an unweighted effective exchange rate index, using 0 as a base period inwhich the index assumes the value of 100.(e) Calculate the normalised trade weights.(f) Calculate the trade-weighted effective exchange rate index. What is the rate ofappreciation or depreciation of the Australian dollar in effective terms? Compare thisresult with that obtained in (b) and (d) above. Comment on your results.(g) Recalculate the effective exchange rate as a weighted geometric average. Comparethe results with the previous ones.
This question was answered on: Oct 07, 2020Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Oct 07, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.