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Define what the Forex is? Explain how is the Forex impacted by the global balance of...

Define what the Forex is? Explain how is the Forex impacted by the global balance of payments for each country? The textbook identifies 4 items that determine the price of a currency, describe why these 4 factors affect a currencies price. Below are 4 statements: Please identify the outcome for the exchange rate of the currency based on the statement (1) A rise in the EU interest rate relative to interest rates abroad (Euro). (2) Rising US inflation 2% to 3% while all other countries inflation stays the same. What happens to the US Dollar? (3) A severe recession in Japan as compared to other countries(Yen). (4) Russia a 15% tariff on EU cars (Ruble).

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