Exchange rate, Money market hedge, interest arbitrage, Inflation, interest rates, Economics

Exchange rate, Money market hedge, interest arbitrage, Inflation, interest rates, Economics.

Help me study for my Economics class. I’m stuck and don’t understand.
/0x4*

There are 2 question to be answered. The first is about interest rate and money market hedging. Also interest arbitrage. The second question I need answering is only about exchange rates and how different factors affect exchange rates between China and USA. In the documents there are 3 questions but I only need 2 to be answered. The first and last question and not the middle. The last question I do not need anything other than what happens to the exchange rate of the two countries with each given scenario.

Exchange rate, Money market hedge, interest arbitrage, Inflation, interest rates, Economics

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