One of the major complaints regarding foreign exchange rates and flexible exchange rates is that the exchange rates are too volatile when they float. Define how the following contributes to volatility of the exchange rate: trade-balance currency substitution differential speed of adjustment of asset markets versus goods markets the news Explain each of the above. Financial markets are the forums in which buyers and sellers of financial assets such as stocks and bonds, and commodities such as grains, oil and gold, meet. Because there are uncertainties of outcome, organizations must develop strategies to manage the risk associated with it. Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks. How do organizations measures risk and what global initiatives exist in financial risk management? Use APA standards in writing your paper.