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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.

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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.


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  1. Explain two factors that may cause an appreciation of the dollar against the rand.
  2. Draw a diagram to illustrate each of these changes.
  3. Discuss the possible consequences of the dollar appreciating against the rand for US and South African firms.