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Explain the Concept of Cross Rates

question 59

Essay

Explain the concept of cross rates.Include the description of a vehicle currency and the role it plays in the foreign exchange market.


Definitions:

Canadian Company

A business entity that is registered, operates, or was founded in Canada.

Real Exchange Rate

The price of a country's goods and services compared to those of another country, adjusted for inflation.

Trade Restriction

Measures implemented by governments to control the amount of trade across their borders including tariffs, quotas, and bans.

Net Capital Outflow

The net balance resulting from domestic residents buying foreign assets and foreigners buying domestic assets.

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