EIFM Seminar 6 – week commencing Nov 15^th 2021

Question 1: If the Indian government unexpectedly announces that it will be imposing higher tariffs on foreign goods one year from now, what will happen to the value of the Indian rupee today?

Question 2: In September 2012, the Federal Reserve announced a large-scale asset-purchase program (known as QE3) designed to lower intermediate and longer-term interest rates. What effect should this have had on the dollar/ euro exchange rate?

Question 3: If a strike takes place in France, making it harder to buy French goods, what will happen to the value of the U.S. dollar?

Question 4: When the Federal Reserve conducts an expansionary monetary policy, what happens to the money supply? How does this affect the supply of dollar assets? How does this affect the dollar exchange rate in the short run and long run?