Writing Resources
Section D Question 1 Answered The fundamental equilibrium path FEP is an artificial process that is used to limit the movements of currency either above or below another as a result of external events that occur randomly as well as the influence of the short term forces With regards to exchange rates for currencies the fundamental equilibrium is focused on maintaining an external balance In other words it refers to the real exchange rate that influences the external balance by matching with the medium term capital flows accurately to ensure an equilibrium There is a requirement for the drawing of FEP that there must not be official intrusion of the government or other regulatory bodies in the worth of the currency The FEP is an essential tool for currency traders and market analysts as it facilitates the making of informed decisions regarding the purchase or sale of currency Additionally it enables a party to carefully assess and predict the direction a currency will move at a particular time FEP is utilized by technical analysts to provide their decisions regarding probable movement of currency though the considerations of necessary factors to help investors It is important for importers and exporters of hedging activities to safe guard businesses for currency fluctuations Question 2 Answered A credit risk refers to the probability that a borrower will fail to make the required payments on a particular date In other words it is a tool used to assess the chances that a default on the loan or credit payments will be fulfilled as dictated In efficient markets the level of credit risks has a positive correlation with borrowing costs In other words when the risk is high then the borrowing costs also increase
Constitution Portfolio Project Who Will Listen to Democrats Warning on Russia The New York Times explains how in the face of complacent Republicans Russia's threat to countries surrounding and the west continues to grow The Democrats on Senate foreign relations have issued a report on Trump s campaign dealings with Russian officials in the 2016 election Now President Trump tells the people of the united states that fake news networks such as CNN NBC and the New York Times are putting out dishonest media about the handling of the collusion with Russia Donald Trump persists in his bizarre fascination with Mr Putin and refuses to acknowledge that Russia poses a security threat even though his own recently released national security strategy says Russia along with China seeks to challenge American influence values and wealth Republicans in Congress have expressed more concern about those who revealed Russia s meddling than about the meddling and have done nothing to ensure it cannot be repeated This article explains the legislature Article One is being taken over right wing republican This makes most of their decisions in favor President Trump s claims So when Donald Trump says that that frankly I believe that having a good relationship with Russia and Putin Isn t necessarily a bad thing and that fake news networks are putting out false information This causes the Republicans to have to go onto those networks and cover for anything President Trump says no matter if it false or true
