Market for foreign exchange Essay Example | Topics and Well Written Essays - 1000 words

Market for foreign exchange - Essay Example This research will begin with the definition of the foreign exchange market as one of the financial markets that is characterized by buyers and sellers of assets called ‘currencies’. It has traditionally performed the role of converting one currency into another. It is consistent with the principles of market economy laid down by Adam Smith, according to which the value or price of a currency is determined by the market forces of demand and supply. The terms ‘pegged’ and ‘float’ are often discussed when dealing with foreign exchange markets and are means of determining the levels of controls on one’s currency. As mentioned above, a currency maybe pegged or valued against a basket of other currencies or maybe left to the market forces of demand of supply in what is known as ‘free float’. In between the two, however, lies an intermediate form, the ‘balanced float’ that is characterized by some government control bu t is largely based on the principles of demand and supply. Taking a more realistic view, the value of a country’s currency is determined by the interplay of several factors including the economic, political, geographic environment. Tourism also positively affects the value of the currency by increasing demand for the country’s currency. For instance, a tourist who visits country A will require country A’s currency to purchase any goods and/or services in that country. Holding everything else constant, this shall result in an increase in demand for that currency, thus, bidding up its price.

Shitaos Drunk in Autumn Woods Essay Example | Topics and Well Written Essays - 500 words

Shitaos Drunk in Autumn Woods - Essay Example Concurrently, trees at the center of the painting are denser in darker hues of gray and black. These trees have shades of orange and rust in their leaves. It is at this focal point where viewers get the chance to observe that there are people (friends) in three sets of settings amidst the conglomerate of autumn trees. At the left and middle portions, there are two sets of friends in groups of three which could be interpreted as drinking and sharing stories. They are seated on the grass and garbed in traditional Chinese robes. In addition, also at the mid-section, there are also friends seen to be walking where two friends are side by side and one is situated at the back just beneath a tall tree. Likewise, at the right side, on the banks of a river and sitting on a small boat is another person. These friends could be analyzed as on their way to a destination beyond the small bridge. In addition, just perpendicular to the bridge, two friends on horseback are seen riding. Finally, at the left lower portion of the painting, there are people seated on the porch of a house, apparently waiting. More trees are shown in the lower portion of the painting sharing similar shades of gray some with orange leaves. The painting could be interpreted as a venue where friends share memorable moments through sharing stories and a drink under the autumn trees. Other people are travellers on a journey who seem to enjoy the peaceful atmosphere of the environment. The positioning of images in strategically selected positions.