-Based on the diagram above,if the official value of the krone is fixed at $0.20 per krone,then the Norwegian krone is _________ and the international reserves of Norway will ___________ kroner per period.
Definitions:
Forward Market
A financial market in which participants can enter into contracts to buy or sell assets at a specified future date and price.
Spot Market
The Spot Market is a public financial market in which financial instruments or commodities are traded for immediate delivery.
Foreign Currency
The currency of another country, which is required for foreign trade and investment.
Hedge
An investment or action taken to reduce the risk of adverse price movements in an asset.
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