Exchange rates between two currencies using exchange rate data
Task One
Calculate the rate of growth of the exchange rates between two currencies using exchange rate data on your selected countries. Before doing so,answer the following question.
What is the rate of growth and which formula is used to calculate it?
Display the rates of growth of the exchange rates between the two currencies of your selected countries in Excel or SPSS (or Tableau) chart/graph over the period 2000-2021.
Task Two
Calculate the inflation rates in each of your two selected countries using the Consumer Price Index (CPI) from the 2022 WDI data. Remember the inflation rate is the rate of growth of the
CPI.
Display the inflation rates of your selected countries in Excel or SPSS chart/graph over the period 2000-2021. Then answer the following question.
Which of your two selected countries has the highest rate of inflation based on the CPI?
Task Three
Calculate the inflation rates in each of your two selected countries using the GDP Deflator from the 2022 WDI data. Remember the inflation rate is the rate of growth of the GDP Deflator.
Display the inflation rates of your selected countries in Excel or SPSS (or Tableau) chart/graph over the period 2000-2021. Then answer the following question.
Which of your two selected countries has the highest rate of inflation based on the GDP
Deflator?
Task Four
Calculate the difference between your two selected countries CPI based inflation rate. This difference is the predicted rates of growth of the exchange rate over the period 2000-2021.
Also, calculate the difference between your two selected countries GDP Deflator based inflation rate. These differentials are also known as the predicted rates of growth of the exchange rate over the period 2000-2021.
Display the predicted rates of growth of the exchange rate of currencies of your selected countries in Excel or SPSS chart/graph
over the period 2000-2021. Then answer the following question.
Are there any substantial differences in the predicted rates of growth of the exchange rates of currencies of your selected countries over 2000-2021 from the two indicators ?