Assignment

Part 1

Currency Exchange Risk" Please respond to the following:

• From the e-Activity, based on your research of the current EURO currency crisis, predict the future of the currency, including the impact the financial investment and risk within the EURO zone for financial institutions. Provide support for your prediction and evaluation.

• Provide one citation / reference for your initial posting that is not your textbook. Please do not use Investopedia or Wikipedia.

Part 2

Create a response to the statement below

I am not sure if the Euro will completely fall as that could lead to more extensive world bankruptcy. Despite, several people consider that Euro crisis is under control, which is not entirely correct. The actual problem is the European economies are not well balanced. According to the article stated "The actions of the E.C.B. and other policymakers in Europe have had the effect of filling large financial gaps in periphery bank and sovereign funding," wrote Bob Prince of Bridgewater Associates this week, "but have done relatively little to resolve competitive imbalances among these economies." (Floyd Norris, Oct 25, 2012)

Reference:

Floyd Norris, (Oct 25, 2012). Euro Avoids Collapse, but Its Future Remains Uncertain ... (n.d.).