Exchange Rate Flashcards
1
Q
exchange rate
A
the external price of a currency usually measured against another currency
2
Q
managed exchange
A
where the government intervenes in the foreign exchange market to influence its value
3
Q
freely floating exchange rate
A
the exchange rate is determined solely by the interplay of demand for, and supply of, the currency
4
Q
fixed exchange rate
A
an exchange rate fixed at a certain value and maintained at this value by the central banks intervention in the foreign exchange market
5
Q
currency union
A
an agreement between a group of countries to share a common currency and usually to have a single monetary and foreign exchange rate policy
6
Q
A
