In this short video, we discuss:
- What an exchange rate is?
- Brief (very) history of why the US dollar has been historically stable and differences between fixed and floating exchange rates
- Factors that may determine/influence why a currency may appreciate or depreciate
- Then how different exchange rates affect an economy.
From this task, my aims were to experience/learn video editing (still a work in progress) and attempt to understand a topic which appeared quite challenging and complicated, which it proved to be. The many factors involved in determining an exchange rate explains why forex is such a lucrative market.
Year 11 MHS Economics 2020 