There are two parts of this assignment.
A. Choose six factors from the follow that have greatest influence the value of an exchange rates and provide a historical example for each. (2000 words) ,plz reference the sources.
Topic 1: Supply and demand
Topic 2: The balance of payments
Topic 3: Interest rates and money supply policy
Topic 4: Inflation and deflation
Topic 5: Asset prices
Topic 6: Commodity prices and terms of trade
Topic 7: Government budget and fiscal policy
Topic 8: Credit ratings
Topic 9: Currency controls
Topic 10: Politics and wars
Topic 11: Industrial relations, social unrest and nature
Topic 12: Market sentiment
Topic 13: Big trades
B. Most of the major global currencies are floating, allowing the market to determine rates through the interaction of demand and supply. However, the Peoples Bank of China (PBOC) adopts a different approach for the valuation of the Chinese Yuan. How the PBOC manages the value of the CNY and provide a substantiated opinion about the future direction of PBOC policy? (1000 words)