Business Chapter 31 Flashcards
1
Q
Appreciation (of a currency)
A
A rise in a value of a country’s currency I making exports more expensive and imports cheaper .
2
Q
Depreciation (of a currency)
A
The loss in value of a country’s currency (making exports cheaper than imports)
3
Q
Devaluation (of a currency)
A
The adjustment of the value of a currency in relation to other currencies to make it weaker ( usually by the government )
4
Q
Economic risk
A
The risk that future cash flows will change due to unexpected exchange vote changes
5
Q
Revaluation (of currency)
A
The adjustment of the value of a currency in relation to other currencies to make it stronger ( usually by government)
