1 For Each Of The Following Is It Part Of The Demand For Yen Or Supply Of Yen In The 2852565

1. For each of the following, is it part of the demand for yen or supply of yen in the foreign exchange market? a. A Japanese firm sells its US government securities to obtain funds to buy real estate in Japan. Demand for yen. The Japanese firm is trying to convert dollars to yen, so it is contributing to the demand for yen. b. A US import company pays for glassware purchased from a small Japanese producer. The Japanese exporter needs to buy yen to buy from the producer. This contributes to the demand for yen. c. A US farm cooperative receives payment from a Japanese importer of US oranges? The US farm cooperative is paid in yen. It needs to convert the yen to dollars, so it contributes to the supply of yen for foreign exchange. d. A US pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange. Document Preview:

Dulshan De Silva ECON 335 – Aaron Popp Assignment # 6 May 19, 2016 Econ 335: Assignment 6 For each of the following, is it part of the demand for yen or supply of yen in the foreign exchange market? A Japanese firm sells its US government securities to obtain funds to buy real estate in Japan. Demand for yen. The Japanese firm is trying to convert dollars to yen, so it is contributing to the demand for yen. A US import company pays for glassware purchased from a small Japanese producer. The Japanese exporter needs to buy yen to buy from the producer. This contributes to the demand for yen. A US farm cooperative receives payment from a Japanese importer of US oranges? The US farm cooperative is paid in yen. It needs to convert the yen to dollars, so it contributes to the supply of yen for foreign exchange. A US pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange. Demand for yen because the pension fund needs to convert dollars to yen. Please classify the following exchange rate regimes as fixed, intermediate, or flexible. Please assume that if the exchange rate regime is fixed, I am giving you the exchange rate to which it is fixed: The Japanese yen-US dollar exchange rate: It’s difficult to conclude a management of this exchange rate. The Japanese yen-US dollar exchange rate is a flexible exchange rate regime determined by market forces. The Malaysian ringgit-US dollar exchange rate from 1999 to 2005: From 1999 to 2005, the ringgit-US dollar exchange rate is constant, indicating a fixed exchange rate regime. The Malaysian ringgit-US dollar exchange rate from 2006 to the present above As the ringgit-dollar exchange rate has fluctuated significantly it’s a flexible exchange rate regime. The Swiss franc-euro exchange rate from 2012 to late 2014: The Swiss franc-euro exchange rate is fairly stable over the time period, but not completely steady. In this…

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