AN EXPERIMENTAL APPROACH TO UNDERSTANDING EXCHANGE RATE DETERMINATION
Received: 19th April 2023; Revised: 20th July 2023, 29th July 2023; Accepted: 02nd August 2023
Keywords:
International Finance, Exchange Rate Determination, Classroom Experiment, Student EngagementAbstract
The objective of this study is to emphasize the importance of in-class experiments in enhancing students' learning experiences. In this study, I have utilized an in-class experiment to help students appreciate the significance of economics and political factors, along with relevant news, in determining exchange rates. I aim to provide students with a hands-on experience that enables them to better understand and apply their subject knowledge to explain exchange rate movements, such as interest rate parity. The results of the study demonstrate a significant and positive correlation between students' project results from the classroom experiment and their academic performance in the subject. The innovative teaching approach, which includes the in-class experiment method, has significantly facilitated students in achieving better academic performance. Overall, this study highlights the importance of incorporating interactive and experiential learning approaches in the classroom to enhance students' understanding and application of subject knowledge. The use of in-class experiments can be an effective teaching tool that helps students to connect theoretical concepts with real-world applications, thereby improving their academic performance.
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