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One of the major complaints regarding foreign exchange rates and
flexible exchange rates is that the exchange rates are too volatile
when they float.

Define how the following contributes to volatility of the exchange
rate:
trade-balance
currency substitution
differential speed of adjustment of asset markets versus goods
markets
the news
Explain each of the above.
Financial markets are the forums in which buyers and sellers of
financial assets such as stocks and bonds, and commodities such as
grains, oil and gold, meet. Because there are uncertainties of
outcome, organizations must develop strategies to manage the risk
associated with it.


Identify the major business and financial risks such as interest
rate risk, foreign exchange risk, credit, commodity, and
operational risks.
How do organizations measures risk and what global initiatives
exist in financial risk management?

Use APA standards in writing your paper. 

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