Foreign exchange market has increased significantly

Over the last few decades, the size of the foreign exchange market has increased significantly. Explain in detail the factors that has fuelled this growth. Why is the US dollar the most widely used currency of quotation in the foreign exchange markets?

 

Sample Solution

Currency fluctuations are a natural result of most major economies’ use of variable exchange rates. Exchange rates are influenced by a variety of factors, such as a country’s economic performance, inflation expectations, interest rate differentials, capital flows, and so on. The strength or weakness of the underlying economy usually determines the exchange rate of a currency. As a result, the value of a currency might fluctuate from one moment to the next. Many people are unconcerned about exchange rates because they are rarely necessary. The average person’s daily activities are undertaken in their own currency. Exchange rates are only relevant for a few transactions, such as international travel, import payments, or international remittances.

ial networks increasingly become integrated into our society, changing curriculums by embedding social networks is a question to be considered. As such, VR devices can benefit students’ education and learning abilities by making them more engaged with their learning process, which can be better than current teaching methods.

In contemporary society, students are accustomed to receiving information through interactive learning environments due to the rise of social media. Their knowledge of news and education outside of the classroom comes from informal experiences such as posts and videos on platforms such as Snapchat or Instagram. In contrast, according to Elliot Hu-Au and Joey J. Lee, a doctoral student and a lecture professor, respectively, of Columbia University, students’ education in a classroom setting comes from “transmissionist methods such as lectures, leading to passive, disengaged students”(Hu-Au and Lee 2). Because students are more accustomed to interactive learning environments, school environments are boring, leading to disengagement. A study conducted by Dorothy Lucardie, a researcher and administrator of adult education, found that in a learning environment “fun and enjoyment did provide a great motivator for participation and learning” and that it aided in a “greater absorption of the learning content” (Lucardie 6). This study shows that disengaged students who take no interest in class education, have lower absorption of content, thus leading to a worse overall learning experience. Also, an increase in student disengagement leads to “many unfavourable behaviours hindering student success, including dissatisfaction, negative experience, and dropping out of school”(Hu-Au and Lee 4). The introduction of VR to educational facilities can “provide an opportunity to boost student engagement”(Hu-Au and Lee 4). VR allows a student to have hands-on experience with all types of situations. This experience likely is new to many students, encouraging them to stay engaged with VR. Student disengagement is clearly linked to lower learning capabilities and because VR boosts student engagement, VR should be implemented into educational facilities.

Already many facilities such as The Arlington Science Focus School in Arlington, VA; the Gaelscoil Eoghain Ui Thuairisc school in Carlow, Ireland; the Drury University in Springfield, MO; and many others are seeing the advantages of education through VR implementation. They have found that the introduction of VR into educational institutes beneficially affected the way students understood a concept. Marianne Stenger, a journalist from the online education provider OpenColleges, claims that it allows students to “learn from realistic scenarios without the risk of practicing an unfamiliar skill in an uncontrol

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