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Rush to swap Aussie dollars
Read more: http://www.theage.com.au/money/planning/rush-to-swap-aussie-dollars-20141030-11e1s1.html#ixzz3Ktc7HVhQSource: John Collett, The Age, November, 02, 2014
Questions (1600 words)Briefly summarise the main issues discussed in this article?Over the past three years (12 quarters or 36 months) which way the Australian dollar has moved relative to that of the US dollar? Illustrate this situation using an appropriate graph. What have been the key factors contributing to this behaviour of the Australian dollar?(C) Explain how a weak exchange rate for the Australian dollar could have both negative and positive impacts on the Australian economy. (d) What action could the Reserve Bank can take in order to restore the exchange rate, and what side effects might these actions have? Do you think that such actions would be effective?You must find additional material (at least 4 references) regarding the issue featured in your allocated topic, including additional data for other countries and/or years.