Chapter 15 Outline | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VIII. EXCHANGE RATES AND THEIR DETERMINATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. An exchange rate is the number of units of one currency exchangeable for one unit of another. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. The United States now uses a system of flexible or floating exchange rates. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. Under this system, exchange rates are determined by the demand for and the supply of dollars. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. If the exchange rate is not at its equilibrium level, there is a tendency for it to move towards the equilibrium rate. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. Movements in exchange rates alter the international price of goods and services. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. One factor affecting exchange rates is real GDP. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. A second factor affecting exchange rates is the inflation rate. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. A third factor affect exchange rate is the rate of interest. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Economics 504 (2024)
References
- https://www.investopedia.com/ask/answers/forex/how-forex-exchange-rates-set.asp
- https://www.investopedia.com/terms/s/weak-currency.asp
- https://www.wikihow.com/Calculate-Exchange-Rate
- https://www3.nd.edu/~cwilber/econ504/504book/outln15h.html
- https://www.rba.gov.au/publications/bulletin/2018/dec/pdf/understanding-exchange-rates-and-why-they-are-important.pdf
- https://www.worldremit.com/en/blog/finance/how-to-calculate-exchange-rates
Top Articles
What are the 4 dimensions of space?
How financial markets work
Red Thunder Energy Drink Discontinued
Mydocbill.com/Mr
Facebook Scentsy Banner
Walmart Store 1
R/Pillowtalkaudio
jackson, MS general for sale - craigslist
Greensboro: Skip The Games, Live The Experiences
The Ultimate Guide To Skipping The Games In Fayetteville
Diablo 4 Kehjistan All Side Quest Locations
Diablo 4 - Season 1 Story Campaign Walkthrough - SAMURAI GAMERS
Latest Posts
Best Stock Market Courses Online with Certificates [2024] | Coursera
Capital Market and Money Market
Article information
Author: Arline Emard IV
Last Updated:
Views: 5754
Rating: 4.1 / 5 (72 voted)
Reviews: 95% of readers found this page helpful
Author information
Name: Arline Emard IV
Birthday: 1996-07-10
Address: 8912 Hintz Shore, West Louie, AZ 69363-0747
Phone: +13454700762376
Job: Administration Technician
Hobby: Paintball, Horseback riding, Cycling, Running, Macrame, Playing musical instruments, Soapmaking
Introduction: My name is Arline Emard IV, I am a cheerful, gorgeous, colorful, joyous, excited, super, inquisitive person who loves writing and wants to share my knowledge and understanding with you.