What Happens in the Foreign Exchange Market If the U

question 314

Essay

What happens in the foreign exchange market if the U.S. interest rate increases? What is the effect on the exchange rate?

---

Definitions:

Automatic Reflex

An automatic reflex is an involuntary and nearly instantaneous movement in response to a stimulus, not requiring conscious thought.

Obsessive-Compulsive Checkers

Individuals who excessively check things (such as locks, appliances, and switches) due to fears and anxieties related to obsessive-compulsive disorder.

Obsessive-Compulsive Cleaners

Individuals who experience a compulsive need to clean or organize as a symptom of obsessive-compulsive disorder (OCD).

Phobias

Intense, irrational fears of specific objects or situations that pose little or no actual danger.