How currency exchange rates are determined

After reading chapters 16, 17, 18, and 19 (link provided below), write a 2-page paper describing how currency exchange rates are determined in markets.

Exemplify how it occurs by showing it in graphical form.

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How does a country’s balance of trade coincide with its exchange rate with another country?

Please skip to page 331 after following the link below for insight on the required reading material. Some pages may not be available online, but can be provided as jpeg if needed. 

https://books.google.com/books?id=Vui5DQAAQBAJ&printsec=frontcover&dq=macroeconomics+gwartney+16E+chapter+16&hl=en&sa=X&ved=0ahUKEwjv54X9sY3dAhVMZawKHdbBDN8Q6AEIJzAA#v=onepage&q&f=false

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