FINA412-1201B-01 : Risk Management Assignment Type: Discussion Board Deliverable Length: 300 words One of the major complaints regarding foreign exchange rates and flexible exchange rates is that the...

FINA412-1201B-01 : Risk Management  Assignment Type: Discussion Board   Deliverable Length: 300 words     One of the major complaints regarding foreign exchange rates and flexible exchange rates is that the exchange rates are too volatile when they float. Define how the following contributes to volatility of the exchange rate: trade-balance currency substitution differential speed of adjustment of asset markets versus goods markets the news Explain each of the above.   Grading Criteria40%Define how the following contributes to volatility of the exchange rate: trade-balance currency substitution differential speed of adjustment of asset markets versus goods markets the news30%Explain each of the above.30%Post a response to the Discussion Board and comment on other postings.