travelex Flashcards
What does Travelex do?
Travelex is a foreign exchange company focused in foreign currency exchange, issuing prepaid credit cards, and making travelling internationally an easier experience financially for its customers
what is the pound to dollar exchange rate
0.83
what is the pound to euro exchange rate
0.89
what does it mean when a currency becomes more valuable in terms of other currencies
it appreciates
what does it mean when a currency becomes less valuable in terms of other currencies
it depreciates
what is the Equilibrium Exchange Rate
when the amount of currency needed in foreign exchange equals the quality supplied
what happens to a countries imports and exports when a currency appreciates
imports rise and exports fall
what happens to a countries imports and exports when their currency depreciates
exports rise and imports fall
what market are foreign currencies traded in
foreign exchange
what is exchange rate
the relative price of currencies between countries
if the value of a euro fell from 1.34 to 1.24, what does this imply?
the euro depreciated and the dollar appreciated
what does it mean when the U.S dollar price of a foreign currency rises
it becomes cheaper for foreigners to buy U.S goods
when the U.S dollar appreciates relative to the Canadian dollar, what happens?
U.S goods become more expensive in Canada
when a currency appreciates, the price of exports to other countries will:
increase, as it will cost more for other countries to buy foreign goods
when a currency depreciates, the price of its exports to other countries will:
decrease, because it costs less for other countries to buy Remain goods
