Explore BrainMass
Share

Predict the Change of Exchange Rate

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Not sure which formula gives me this answer.
The Economist reports that the interest rate per annum is 5.93% in the U.S and 70.00% in Turkey,in the October 23, 1999 issue. Based on the reported interest rates, how would you predict the change of the exchange rate between the U.S. dollar and the Turkish lira?

Not sure how to get started.

© BrainMass Inc. brainmass.com October 16, 2018, 9:12 pm ad1c9bdddf
https://brainmass.com/economics/international-policies/predict-the-change-of-exchange-rate-175522

Solution Summary

Uses US dollar and Turkish Lira from 1999

$2.19
Similar Posting

Change in US Exchange rates based on political changes

7. The President of the U.S. announces that he will reduce inflation with a new anti-inflation program. If the public believes him, predict what will happen to U.S. exchange rates.

11. If American auto companies make a breakthrough in automobile technology and are able to produce acar that gets 60 miles to the gallon, what will happen to the U. S. exchange rates?

13. If the expected inflation drops in Europe so that international rates fall there, predict what will happen to the US. exchange rates.

15. If there is a strike in France, making it harder to buy French goods, what will happen to the value of the euro?

View Full Posting Details