Lesson 38-Exchange rates Flashcards
1
Q
Name the 3 exchange rate systems?
A
.Floating
.Fixed
.Managed
2
Q
Define the term exchange rate?
A
The exchange rate is the external value of a currency in terms of other currencies.
3
Q
Where is the value of a countries currency set?
A
The currency exchange market.
4
Q
What does a the value of a country’s currency depend upon?
A
The supply and demand for a currency.
5
Q
What is the value of the value of the exchange rate in a floating system determined by?
A
Supply and demand
