~ The Roleplay Chat Thread ~ More updates, check pg 1!

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You're leaving?!

Yep, for tonight at least. *Weeps*

*Sobs* Farewell, we shall see you soon...farewell, small cricket...farewell....
 
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GERBIL!!! You're back!
big_smile.png


Crazy: LOL *throws pies up*

Me? I am Libreg! Give me your bananas!

Sorry about delays in response, I am reading.

I think I finally understand.... kind of...

The exchange rate is the value of the American dollar versus other currencies. The value of the dollar is both caused and reflected by interest rates, and interest rates have much to do with stock prices. Therefore, exchange rates affect stock prices and can be used to make predictions about the market.

Exchange Rates
A weak dollar means American goods are cheaper abroad. It also means foreign goods are more expensive. This suggests consumers will buy American goods. It also means that because money is cheap, the economy will expand, because more businesses will built capital stock, expand their production and continue to borrow money. For the short term, cheap money suggests the stock market will show price rises across the board.
Interest Rates
The dollar is closely tied to interest rates. A low rate will spur borrowing, while a high rate will retard it. All other things being equal, cheap money is good for the economy and manifests itself in higher stock prices. This works only for the short term, because stocks are always future oriented. If rates are low today, investors assume that they will rise soon. Therefore, the rise in stock prices resulting from a cheaper dollar leads to short-term price rises only.
Stocks and Bonds
When interest rates are high, dollars are expensive. As a result, money moves to the bond market, where the expected interest rate is the margin of profit. When rates fall, money moves out of bonds and into stocks, pushing prices upward.


HAH! I understand!
 
Quote:
Me? I am Libreg! Give me your bananas!

Sorry about delays in response, I am reading.

I think I finally understand.... kind of...

The exchange rate is the value of the American dollar versus other currencies. The value of the dollar is both caused and reflected by interest rates, and interest rates have much to do with stock prices. Therefore, exchange rates affect stock prices and can be used to make predictions about the market.

Exchange Rates
A weak dollar means American goods are cheaper abroad. It also means foreign goods are more expensive. This suggests consumers will buy American goods. It also means that because money is cheap, the economy will expand, because more businesses will built capital stock, expand their production and continue to borrow money. For the short term, cheap money suggests the stock market will show price rises across the board.
Interest Rates
The dollar is closely tied to interest rates. A low rate will spur borrowing, while a high rate will retard it. All other things being equal, cheap money is good for the economy and manifests itself in higher stock prices. This works only for the short term, because stocks are always future oriented. If rates are low today, investors assume that they will rise soon. Therefore, the rise in stock prices resulting from a cheaper dollar leads to short-term price rises only.
Stocks and Bonds
When interest rates are high, dollars are expensive. As a result, money moves to the bond market, where the expected interest rate is the margin of profit. When rates fall, money moves out of bonds and into stocks, pushing prices upward.


HAH! I understand!

Awesomeness! I was still searching.
ya.gif
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Small cricket? >.<
 
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Yep, for tonight at least. *Weeps*

*Sobs* Farewell, we shall see you soon...farewell, small cricket...farewell....

*weeps some more into Erbil's shoulder* Farewell, fading small cricket...
lau.gif
Small cricket!
 

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