Learning Outcome Statements (LOS)
　　a Define an exchange rate, and distinguish between nominal and real exchange rates and spot and forward exchange rates;
　　b Describe functions of and participants in the foreign exchange market;
　　c  Calculate and interpret the percentage change in a currency relative to another currency;
　　d  Calculate and interpret currency cross-rates;
　　e  Convert forward quotations expressed on a points basis or in percentage terms into an outright forward quotation;
　　f  Explain the arbitrage relationship between spot rates, forward rates and interest rates;
　　g Calculate and interpret a forward discount or premium;
　　h Calculate and interpret the forward rate consistent with the spot rate and the interest rate in each currency;
　　i  Describe exchange rate regimes;
　　j  Explain the impact of exchange rates on countries’ international trade and capital flows;