The Foreign Exchange Market and The International Monetary System.

1. What is the name of the local currency?
2. What is the exchange rate? How did this currency fluctuate in the past 5 years (appreciated/depreciated against the U.S. dollar)? What caused this fluctuation? You are welcome to add a chart. 
3. What is the PPP (and/or Big Mac Index) for this country? What does it tell us? Explain. 
4. Identify 3-5 staple food items in your household. How much will these items cost in your research country? Is that reasonable/too expensive/etc.? Why? 
5. What is the average income per household in your research country? How much (or what percent) of that income goes to pay for utilities, mortgage, and etc.? Use online resources and government sites of these countries, as well as UM Library Database. 
6. The WSJ and other online newspapers – What is currently happening with your country? How does COVID-19 affect the economy of this country? What is happening with the exchange rate as a result? What is the reaction of the stock market? Did interest rates increase/decrease? Why? Explain. 
7. Does your research country use floating, pegged, or fixed exchange rates? Why? 
8. Did your research country ever seek help from the IMF? What are the results? 
9. What conclusions can you draw from your research?

Note: as you are reading this week’s chapter, focus on:

• Three types of exposures: transaction, translation, and economic. 
• Remember, you are presenting a synthesis of your study and research, not a bibliography review or just simple facts. Your posts should be presented in the APA format (in-text citations, proper citation of direct quotes, and a reference list).