Exchange Rates Flashcards
1
Q
What is the exchange rate?
A
the price of what you get for your $NZ
2
Q
What are you doing in the foreign exchange market?
A
You are doing a deal with someone who has foreign currency and wants $NZ
3
Q
What things make up the demand for $NZ?
A
- exports
- overseas tourists to NZ
- capital flowing into NZ
4
Q
What things make up the supply of $NZ?
A
- imports
- NZ travel overseas
- capital flows out of NZ
5
Q
What is it called when the value of the $NZ goes up?
A
appreciation
6
Q
What is it called when the value of the $NZ goes down?
A
deppreciation
7
Q
What is a devaluation?
A
this is the equivalent of a depreciation but it happens when someone is controlling the exchange rate
8
Q
What is a revaluation?
A
this is the equivalent of an appreciation but it happens when someone is controlling the exchange rate
9
Q
exporters don’t want the NZD to
A
appreciate
10
Q
tourists overseas want the NZD to
A
appreciate
