Demand and supply of dollars (video)Syllabus: Distinguish between a depreciation of the currency and an appreciation of the currency.
Draw diagrams to show changes in the demand for, and supply of, a currency.
Watch the video Exchange rate 03: Determining the Rand Dollar exchange rate and then answer the questions below. You can watch this in the window below, or follow the previous link to open the video in a new web window.
- Explain two factors that may cause an appreciation of the dollar against the rand.
- Draw a diagram to illustrate each of these changes.
- Discuss the possible consequences of the dollar appreciating against the rand for US and South African firms.