Macro 3 Flashcards
The portion of a country’s balance of payments account that measures the value of a country exports of goods and services minus the value of its goods and services
Balance on goods and services
Investment earnings by US residents from their foreign assets minus investment earnings by foreigners from their assets in the US
Net investment income from abroad
The portion of the balance of payments account that measures the countries balance on goods and services net income abroad plus that on the unilateral transfers abroad
Balance on current accounts
The record of a country’s international transactions involving purchases or sales of financial in real assets
Financial account
The price measured on one country’s currency of purchases one unit of another
Exchange rate
With respect to the dollar and increasing the number of dollars needed to purchase one unit before exchange and a flexible exchange rate system
Currency depreciation
With respect to the dollar, a decrease in the number of dollars needed to purchase one unit of foreign-exchange inflexible rate system
Currency appreciation
Someone who takes advantage of the teeny differences in the exchange rate across markets by simultaneously purchasing a current C and one market and selling it to another
Arbitrage
Someone who buys or sells foreign-exchange in hopes of profiting the exchange overtime
Speculator
The idea that the exchange rate between two countries will adjust in the long run to equalize the cost of a basket or internationally traded goods
Purchasing power parity
Determined in for an exchange markets by the forces of demand and supply without government intervention
Flexible exchange rate
Rate of exchange between currencies paid within a narrow range and maintained by the central bands on going purchases and sales on currencies
Fixed exchange rate
An increase in the official paid price on foreign exchange in terms of domestic currency
Currensy devaluation
A reduction in the official Peg price of four exchange in terms of domestic currency
Currensy re-evaluation
An international organization that establish rules for maintaining the international monetary system that makes Logans two countries with temporary glance of payment problems
InterNational monetary fund
