6.3 foreign exchange rates Flashcards
1
Q
Foreign exchange rates:
A
the value of one currency int erms of another currency
2
Q
Floating exchange rates
A
determined by tyhe forces of demand and supply
3
Q
Fixed exchange rates
A
A system where the exchange rate
remains fixed relative to other currencies.
4
Q
Appreciation
A
the value of one currency rising in relative to another currency
5
Q
deapraction
A
the value of one currency decreasing realtiv eto another which occurs when increased in demand or decrease of supply of one currency
6
Q
Speculation:
A
trading high-risk financial assets with the hopes of earning high
returns.
7
Q
A
