Country Groups for Foreign Exchange Exercise

Name Instructor Course: International Trade & Investment, Spring 2017  Date     Foreign Exchange Exercise Q1. Select two (2) countries one each from two of the country groups (from Group 1 through Group 6) in EXIBIT 1on page 1 above:   a)      Identify the currencies of the two countries by name Canada uses the Dollar, while Argentina uses Pesos   b)     The exchange rate of the two currencies expressed in terms of US Dollar per X currency (called the direct quote or price notation) and the exchange rate expressed in terms of X currency per domestic, US Dollar(indirect quote or volume notation)  

	Canada	Argentina
Direct quote	USD/CAD	USD/ARS
Indirect	CAD/USD	ARS/USD

    Q2. For the two countries selected above, how much has each currency appreciated or depreciated (in percentages) between April 7, 2016 and April 7, 2017?   To find out the level of currency appreciation or depreciation.    (E_t – E₀)/E₀ * 100 = % Δ ER, where:   E₀₌ Exchange rate at the beginning of the period (US Dollar per X currency) E_{t =} Exchange rate at the end of the period (US Dollar per X currency) %Δ ER = change in exchange rate = the amount of appreciation or depreciation (in percentages)  

	CAD/USD	USD/CAD	ARS/USD	USD/ARS
4/7/2016	1.3163	0.7597	14.514	0.0689
4/7/2017	1.3397	0.74644	15.36	0.065

  Canadian Dollarà (0.7466-0.7597/)/0.7597à depreciation at -1.75% Argentine Pesos à(0.065-0.0689)/ 0.0689à depreciation at -5.51%   Q3. a) From the above website, use the Plot Interface function to create a chart for each of the two currencies between two time periods. Attach the charts to your paper.           b)     From the charts, describe the movements or trends of the exchange rates during the period. In the past two years, both the...