Explain difference between nominal and real exchange rates

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Problem 1. List and explain any five factors that have been driving exchange rates in Zambia. Suggest any long term measures that can be put in place in order to contain exchange rate volatility in Zambia.

Problem 2. What exchange rate system is used in Zambia? Why do you think this system is suitable for the country?

Problem 3. Explain the difference between nominal and real exchange rates.

Problem 4. Compare and contrast depreciation and devaluation of the currency.

Problem 5. List and briefly explain three types of exchange rate risk/exposure with special reference to the current situation in Zambia.

Reference no: EM133494499

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