ADDITIONAL INSTRUCTIONS – PLEASE READ VERY CAREFULLY
• CITATIONS AND REFERENCES: You should cite sources though this is not to be considered as coursework, and as such it is not expected for you to include lengthy quotes, and no formal reference list is required (in-text citations are required though).
• PLAGIARISM: All submissions will be put through Turnitin and tested for plagiarism. Therefore, do not copy contents from web and/or any other source.
• WORD COUNT/LIMIT: Each question in the paper has a WORD COUNT of between 500 and 1000 words +/-10%. That is, your answer to each question must not exceed 1100 words. The recommended minimum length of an answer to each question is 450 words, although shorter answers will not be penalised.
• DIAGRAMS, FIGURES or TABLES – If you are including any diagrams, figures or tables in your answer, these MUST NOT be copied from the internet or any other source.include your own figures/diagrams, i.e. drawn using a suitable editor or drawn and inserted by you. Figures should be cited in the main text and appropriately explained.
• You MUST NOT contact the module leader, teaching team or ABS Programme Office (Exams & Assessment or Student Support) through email during the 24-hr period, when the exam is taking place, with any queries related to the exam questions to ensure fairness to all students.answer the questions to the best of your abilities and your own understanding.
Question:
Using the model of uncovered interest parity, analyse the factors that drive the foreign exchange rate. Use relevant economic diagrams to illustrate your answer. (100 marks)
