Economics Today The Macro View Ch. 33 Exchange Rat
Economics Today The Macro View Ch. 33 Exchange Rat
Exam (elaborations)
Economics Today The Macro View Ch. 33 Exchange Rates and the Balance of Payments
6 views 0 purchase
Module
Economics Today The Macro View Ch. 33 Exchange Rat
Institution
Economics Today The Macro View Ch. 33 Exchange Rat
Economics Today The Macro View Ch. 33 Exchange Rates
and the Balance of Payments
1. Balance of Trade ️: The difference between exports and imports of physical goods.
2. Balance of Payments ️: A system of accounts that measures transactions of goods, services,
income, and financial asset...
Economics Today The Macro View Ch. 33 Exchange Rat
Economics Today The Macro View Ch. 33 Exchange Rat
Seller
Follow
CertifiedGrades
Reviews received
Content preview
Economics Today The Macro View Ch. 33 Exchange Rates
and the Balance of Payments
1. Balance of Trade ✔️: The difference between exports and imports of physical goods.
2. Balance of Payments ✔️: A system of accounts that measures transactions of goods, services,
income, and financial assets between domestic households, businesses, governments, and residents of
the rest of the world during a specific time period.
3. Accounting Identities ✔️: Values that are equivalent by definition.
4. Disequilibrium ✔️: If family expenditures exceed family income and this situation is financed by
borrowing, the household may be considered to be in disequilibrium because such a situation cannot
continue indefinitely.
5. Current Account ✔️: A category of balance of payments transactions that measures the exchange of
merchandise, the exchange of services, and unilateral transfers.
6. Current Account Surplus ✔️: If the sum of net exports of goods and services plus net unilateral
transfers plus net investment income exceeds zero.
,7. Current Account Deficit ✔️: If the sum of net exports of goods and services plus net unilateral
transfers plus net investment income is negative.
8. Capital Account ✔️: A category of balance of payments transactions that measures flow of financial
assets.
9. Official Reserve Assets ✔️: Includes foreign currencies, gold, Special Drawing Rights (SDRs), reserve
position in the IMF, and financial assets held by an official agency.
10. Special Drawing Rights (SDRs) ✔️: Reserve assets created by the IMF for countries to use in settling
international payment obligations.
11. International Monetary Fund (IMF) ✔️: An agency founded to administer an international foreign
exchange system and to lend to member countries that had balance of payments problems.
12. Foreign Exchange Market ✔️: A market in which households, firms, and governments buy and sell
national currencies.
13. Exchange Rate ✔️: The price of one nation's currency in terms of the currency of another country.
, 14. Flexible Exchange Rates ✔️: Exchange rates that are allowed to fluctuate in the open market in
response to changes in supply and demand.
15. Appreciation ✔️: An increase in the exchange value of one nation's currency in terms of another
nation.
16. Depreciation ✔️: A decrease in the exchange value of one nation's currency in terms of another
nation.
17. Slope of Demand Curve ✔️: Downward sloping.
18. Market Determinants of Exchange Rates ✔️: Includes changes in real interest rates, changes in
consumer preferences, and perceptions of economic stability.
19. Bretton Woods and the IMF ✔️: The creation of the IMF in 1944 by representatives of the world's
capitalist countries.
20. Foreign Exchange Risk ✔️: The possibility that changes in the value of a nation's currency will result
in variations in the market value of assets.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.07. You're not tied to anything after your purchase.
