haha did the exact same thing

lool same XD

hahaha bro its 8 am here and i still need to watch his a2 videos rip fuck

Glad to see the Chavs benefiting from this rather than 🚬

Loooooooooool

Ami Okazaki do you know Shinji Okazaki for Leicester

I know him but not my relative ;)

Food is included under bills initially

Bang on! I must say your understanding is spot on, going the extra mile to understand theory to this level of detail will do wonders for you, good job

Can you explain in cases a decrease in domestic currency-demand does not guarantee less transfer of foreign currencies into the domestic currency?

Ree e our goods become cheaper for others to buy therefore exports increase shifting out ad

Taken from an earlier comment: Discretionary income described not entirely correctly. It's not just the income left after key bills and taxes are deduced. All the necessities, including food, housing and even clothing are deduced. So purely the money that can be spent on luxury goods and non-essentials are left in the figure of discretionary income. Just pointing it out so that people don't confuse it with disposable income.

When interest rates decrease, people will become comparatively more willing to own debt issued in some foreign currency (such as new bonds issued in that currency or bank deposits), and comparatively less willing to own dept (such as new bonds issued in that currency or bank deposits) issued in the currency of the central bank which lowered its interest rates, because holding the latter has become comparatively less profitable due to the lower than before interest rate. Because the law of supply and demand applies to currencies, that means that the value of the currency of the central bank that lowered its interest rates must decrease relative to the other currency, to compensate for the change in these preferences. This is a ceteris paribus comparison, i.e. it assumes that for instance the rate of inflation in each currency has not changed.

+Bobby Chakraborty The interest rate

Student Vlogs - Dylan man like Dylan

Same concepts for US, GBP, NZD, CAD and so on.

These are all conventional forms. QE is unconventional form - can be found on another episode - the bank rate, MS, ER have been used for a long time, unlike QE.

headcutter09 write 18 points ya spanner

+Chris Percy Uhm.. no. First define the key terms in the question so examiner knows what your'e talking about then make 3 analysis points, 3 evals, judgement and boom. 18 marks

Regarding a bilateral exchange e.g. the price of pounds in dollars, for the exchange rate to change, their needs to be some exchange of currency £ for $ or $ for £ if the exchange rate is to change. A fall in demand for a currency does not imply an exchange of currencies and therefore economists tend not to consider demand shifts left as a cause of an exchange rate depreciation.

+Jack Syder-Mills Wrongggg, demand does not decrease, Supply Increases

+Jack Syder-Mills Following a fall in the interest rates, It becomes less profitable for foreign investors to invest in the UK market so they sell their pounds for another currency (Increasing supply of pounds to the foreign exchange market) therefore supply shifts to the right thus depreciating the currency. Following a rise in interest rates, it becomes more profitable for foreign investors to invest in the UK economy so DEMAND for pounds increase as they need pounds to save here or invest or whatever so demand shifts to the right and therefore the currency appreciates.

It can work in terms of lower demand or higher supply. For foreign investors holding £s in the UK, this is true- a lower interest rate would encourage them to sell the £ and look elsewhere and I admit my chain of analysis was clumsy. By financial institutions and saving I am referring to banks and overseas households, businessman whatever will be less incentivised to save in UK banks because of the lower rate of return. This is the simple explanation I was provided last year: "Depreciation in the exchange rate. If the UK reduce interest rates, it makes it relatively less attractive to save money in the UK (you would get a better rate of return in another country). Therefore there will be less demand for the Pound Sterling causing a fall in its value." If interest rates fall, foreign households may reduce their MPS and this would reduce demand for the £. In other words- continue to save in UK banks but save less and spend more at home- possible and this would reduce demand for the £. The higher supply comes about if you are an investor who earns a living from exchange rate fluctuations and are always moving your capital around to maximise returns. For say households in China a interest rate fall may mean they spend more at home and save less in the UK- this WOULD REDUCE DEMAND. Plus lower interest rates do spur inflation and this makes UK goods less price competitive on the international market, reducing demand (yes) for UK goods and the £.