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Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency?
Answer: A vehicle currency is one specifically widely used to denominate international contracts made by parties who don't reside in the country that issues the vehicle currency. While 2001 ninety percent of foreign exchange transactions engross exchanges of foreign currencies for U.S. dollars so the dollar is considered a vehicle currency.
Q. Contrast the crisis in Poland and Russia. Explain why the Polish economy has done better? Answer: With the end of the 1990s a handful of East European economies including
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Q. Is Europe an optimum currency area? Answer: Yes the area's economy is strongly integrated with its own: most EU members export as of 10 to 20 percent of their output
Q. Discuss the benefits and costs of joining a fixed-exchange area. Answer: Benefits generally gains from the stability of the area and reduced uncertainty. The compete
Q. Discuss the different types of Letters of credit? Types: i. Revocable Letter of credit ii. Irrevocable Letter of credit iii. Deferred payment Letter of credit iv. Confirmed
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