1. What is a fixed exchange rate and how does a central bank maintain a pegged currency?

2. What are the disadvantages of using a fixed exchange rate regime?

1. How does a floating exchange rate regime differ from a fixed exchange rate regime?

2. What role do central banks play in a floating exchange rate system and why might they intervene?

1. What is a dual exchange rate and under what circumstances do countries typically use this regime?

2. What are the benefits and drawbacks of using a dual exchange rate system?

3. How did Venezuela's use of multiple exchange rate regimes illustrate the problems with excessive currency management?

1. How do consumer tastes and preferences for foreign goods affect a country's currency value?

2. How do relative inflation rates between countries influence currency appreciation and depreciation?

3. How do relative income levels and relative interest rates affect currency exchange rates?

1. What are the effects of currency appreciation on a country's exports and GDP?

2. How can currency appreciation benefit consumers and help control inflation?

1. What are the typical causes of currency depreciation and how can it improve a country's competitiveness?

2. What are the negative effects of severe currency depreciation on a country's economy?

1. What is the equilibrium exchange rate and how does it relate to supply and demand?

2. How does the supply of currency relate to a country's demand for imported goods?

3. Why does the demand curve for a currency slope downward and the supply curve slope upward?

1. What is disequilibrium in the foreign exchange market and what factors can cause it?

2. How does the foreign exchange market naturally push exchange rates back toward equilibrium?

1. What creates demand for a country's currency in the foreign exchange market?

2. How does an increase in export sales affect the demand curve for a currency and what happens to the other currency in the pair?

1. How do environmental disasters affect a country's currency and its ability to trade?

2. How can political developments and elections impact the value of a country's currency?

3. What are the long-term effects of war on a country's currency and exchange rates?

1. What is a tariff and how does it affect the price of imported goods for consumers and manufacturers?

2. What are the potential benefits of using tariffs as a trade policy?

3. How did the Smoot-Hawley Act of 1930 affect international trade and the Great Depression?

4. What was the significance of the General Agreement on Tariffs and Trade (GATT) in 1947?

1. What is an import quota and how does it differ from a tariff in protecting domestic producers?

2. What is the World Trade Organization and what role does it play in international trade?

1. What were the main complaints about China's trade practices that led to the 2018 trade war?

2. How did the U.S.-China trade war affect the value of the U.S. dollar and Chinese yuan on the forex?

3. Who bore the greater economic burden from the trade war and why did the U.S. trade deficit with China worsen?