Section 3

Question 0

Foreign exchange rate

Answer 0

Is the price of a currency in the currencies of other nations.

Question 1

Foreign exchange market

Answer 1

The currencies of different countries are bought and sold.

Question 2

Fixed rate of exchange

Answer 2

The currency of one nation is fixed, or constant, in relation to other countries.

Question 3

Flexible rate of exchange

Answer 3

Is a system in which the exchange rate for currency changes as supply and demand for a currency changes.

Question 4

Trade weighted value of the dollar

Answer 4

Is a measure of the international value of the dollar.

Question 5

Balance of trade

Answer 5

Is the difference between the value of its imports and exports.

Question 6

Balance of payments

Answer 6

Is a record of all the transaction that occurred between the individuals, businesses, and government units of one nation and those of the rest of the world.

Question 7

Trade surplus

Answer 7

Exports more than it imports.

Question 8

Trade deficit

Answer 8

Imports more than it exports.