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How Do the Nominal Exchange Rate and the Real Exchange

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How do the nominal exchange rate and the real exchange rate differ?


Definitions:

Hedgers

Individuals or entities that enter financial contracts to reduce exposure to risk, typically by locking in prices for commodities or currencies.

Positions

Refers to the holdings or inventory of investments or trading assets owned by institutions or individuals.

Open Interest

The total number of outstanding derivative contracts, such as options or futures, that have not been settled.

Silver Futures

Contracts to buy or sell silver at a future date at a predetermined price, often used for hedging or speculative purposes.

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