Exchange Rate Key Terms

Exchange Rate Key Terms

Assessment

Flashcard

Social Studies

12th Grade

Practice Problem

Hard

Created by

Alexis Partee

FREE Resource

Student preview

quiz-placeholder

15 questions

Show all answers

1.

FLASHCARD QUESTION

Front

foreign exchange

Back

Refers to foreign national currencies, i.e. for any country, it refers to currencies other than its own.

2.

FLASHCARD QUESTION

Front

exchange rate

Back

The value of one currency expressed in term of another currency; for example, €1 = US$1.5.

3.

FLASHCARD QUESTION

Front

floating exchange rate

Back

An exchange rate system where the exchange

rate is determined solely by the market demand and market supply of the currency in the foreign exchange market without any central bank intervention.

4.

FLASHCARD QUESTION

Front

appreciation

Back

When the price of a currency increases in a

floating exchange rate system.

5.

FLASHCARD QUESTION

Front

depreciation

Back

A decrease in the value of a currency in terms

of another currency in a floating or managed

exchange rate system.

6.

FLASHCARD QUESTION

Front

foreign direct investment (FDI)

Back

When a firm establishes a productive facility

in a foreign country or acquires controlling

interest (at least 10% of the ordinary shares) in

an existing foreign firm

7.

FLASHCARD QUESTION

Front

portfolio investment

Back

The purchase of financial assets such as shares and bonds in order to gain a financial return in the form of interest or dividends. Appears in the financial account of the balance of payments.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?