The figure given below depicts the demand and supply of Brazilian reals in the foreign exchange market.Assume that the market operates under a flexible exchange rate regime. Figure 22.1 
In the figure:
D1 and D2: Demand for Brazilian reals
S1 and S2: Supply of Brazilian reals
Refer to Figure 22.1.The demand curves shown for Brazilian reals are based on:
Definitions:
End-Of-Quarter Payments
Payments that are made at the end of each quarter, typically in a financial or leasing agreement.
Monthly Payments
Regular payments made once a month, commonly in the context of loans, rent, or other agreements.
Present Value
The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.
Annuity
A financial instrument providing a steady series of payments to a person, mainly utilized as a source of income for people in retirement.
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