6.4 Exchange rates Flashcards
1
Q
Define the term “Depreciation”
A
A decrease in the international price of a currency cased by market forces.
2
Q
Define the term “Appreciation”
A
An increase in the international price of a currency caused by market forces.
3
Q
Define the term “Hot money flows”
A
Flows of money moves around the world to take advantage of changes in interest rates and exchange rates.
