Chapter organization Introduction Exchange Rates and International Transactions The Foreign Exchange Market The Demand for Foreign Currency Assets Equilibrium in the Foreign Exchange Market Interest Rates, Expectations, and equilibrium Summary Copyright C 2003 Pearson Education, Inc Slide 13-2Copyright © 2003 Pearson Education, Inc. Slide 13-2 ▪ Introduction ▪ Exchange Rates and International Transactions ▪ The Foreign Exchange Market ▪ The Demand for Foreign Currency Assets ▪ Equilibrium in the Foreign Exchange Market ▪ Interest Rates, Expectations, and Equilibrium ▪ Summary Chapter Organization