In: Economics
Fill in the name of the vocabulary term that is described below.
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f. hard peg |
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g. merged currency |
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h. portfolio investment |
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i. purchasing power parity |
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j. soft peg |
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Answer |
Definition |
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exchange rate is determined by market with some guidance from the central bank if is changing to quickly |
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the buying power of the currency in terms of goods that are internationally traded. |
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a U.S. financial investor purchases bonds issued by British government, because the investor believes the pound will appreciate against the dollar. |
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when a nation chooses to use a common currency shared with one or more nations, like the euro. |
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an exchange rate that is set at a determined amount by central bank policy |
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where currencies of different countries are sold |
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exchange rates that are determined by market forces |
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a decreasing in the value of one currency in relation to another currency |
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Buying maple syrup in Canada at one price and selling it in the US at a higher price. |
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an increasing in the value of one currency in relation to another currency |