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Finance managers of MNCs need to understand the factors to influence the exchange rate between currencies so that they can anticipate how the exchange rate may change in response to certain circumstances

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Finance managers of MNCs need to understand the factors to influence the exchange rate between currencies so that they can anticipate how the exchange rate may change in response to certain circumstances. This is because like other products sold in the market, the price of a currency is also determined by the demand for that currency relative to its supply. Describe FIVE (5) scenarios of expectations of future exchange rates that could affect exchange rate changes.