Finance Chapter 9 - Paper 1 Flashcards
1
Q
What is an exchange rate?
A
A means of showing comparison of one currency in relation to another.
2
Q
What is foreign currency?
A
Money system used in a foreign country.
3
Q
What is export?
A
To sell goods or services to foreign countries.
4
Q
What is import?
A
To buy goods or services from foreign countries.
5
Q
What is bank buying rate?
A
The exchange rates applied when the bank buys back foreign currency from a customer in exchange for Rands
6
Q
What is bank selling rate?
A
The exchange rate applied when the bank sells foreign currency to a customer in exchange for their Rands.
7
Q
What are buying and selling rates?
A
Rates at which currency is bought and sold.
8
Q
What is a commission?
A
The fee allotted to an agent for services rendered
