Page 9 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 9 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629The exchange rate between currencies measures the value of one currency inunits of another currency.%u2022 If any currency declines in its value, this currency is depreciated. When it is increasedin value, it is appreciated.%u2022 When some currencies appreciate, while others depreciate against a particularcurrency, this currency is %u201cmixed in trading.%u201dThe liquidity of one currency reflects the easiest of selling or buying this currency in the foreign exchange market.The illiquid currencies exhibit more volatile movements in their exchange rate.What are the exchange rate determinations?1- Purchasing Power Parity (PPP) and Exchange Rate4:The exchange rate between two currencies must equal the ratio of the price levels in these two countries as follows:S (($/%u20ac) = P$P%u20acExample:if the ounce of gold costs $600 in the U.S. and %u20ac550 in the Eurozone, then the price of one Euro in terms of dollars should be:S (($/%u20ac) = P$P%u20ac= $600%u20ac550 = 1.09$/%u20ac4 Eun, C. S., & Resnick, B. G. (2012). International financial, edition Six, McGraw Hill.