Unit 26 - Exchange Rates Flashcards

1
Q

the money that is used in a particular country at a particular time

A

currency

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2
Q

the forces that decide price levels in an economy or trading system whose activities are not influenced or limited by government

A

market forces

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3
Q

the act of buying something hoping that its value will increase and then selling at this higher price in order to make a profit

A

speculation

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4
Q

a currency whose value is controlled so that It stays at a particular level in relation to another

A

pegged currency

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5
Q

to decrease the value of a currency in an otherwise fixed system

A

to devalue

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6
Q

A Part Of The United Nations which encourages international trade and gives financial help to poor countries

A

International Monetary Fund (IMF)

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7
Q

the rate at which one currency can be exchanged for gold

A

gold convertibility

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8
Q

one of the twelve regional banks in the US that are part of the country’s central banking system and are responsible for making sure other banks in their area follow the rules of the Federal Reserve System. They are also responsible for making financial decisions relating to the US economy

A

Federal Reserve Bank (FED)

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9
Q

an exchange rate that is allowed to change in relation to the value of other currencies

A

floating exchange rate

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10
Q

a measure of how much one unit of a currency would buy in different countries, calculated by comparing the price of one or more particular products in each country. It is used to judge if currency exchange rates are correct in relation to what can be bought with different currencies:

A

purchasing power parity (PPP)

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11
Q

to fall in value in a market system

A

to depreciate

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12
Q

to rise in value in a market system

A

to appreciate

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13
Q

the attempt to protect oneself against future price changes

A

to hedge

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14
Q

agreements to buy something at a fixed price several months ahead

A

futures contract

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15
Q

the amounts of money in foreign currencies that a country has at a particular time

A

currency reserves

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16
Q

a tax placed on the use of currency for various types of transactions

A

currency transaction tax (CTT)

17
Q

to supply or produce something positive such as a profit, an amount of food or information

A

to yield

18
Q

the income that a government or company receives regularly

A

revenue