Describe the Four Determinants of Exchange Rates in the Long

question 216

Essay

Describe the four determinants of exchange rates in the long run.

---

Definitions:

Venture Capitalist

An investor who provides capital to startups or small companies looking to expand, in exchange for equity stakes.

Closely Held

Closely held companies are usually small, owned by a small number of people, typically managers and their common shares are not actively traded.

Primary Market Transactions

Deals that occur in the primary market, where new securities are issued and sold by companies or governments directly to investors, raising capital.

Stock Exchanges

Marketplaces where securities, such as stocks and bonds, are bought and sold by investors.