GLOBBUS - Ch 4 International Trade and Finance

The subject of economics across national boundaries

• International Finance
• Trade Deficit
• Currency
• Foreign Exchange

Amount by which a country’s imports exceed its exports

• International Finance
• Trade Deficit
• Currency
• Foreign Exchange

Unit of metal or paper money used in exchange for goods or services

• International Finance
• Trade Deficit
• Currency
• Foreign Exchange

The transaction method used for making payments between countries; the simultaneous act of buying one currency and selling the other

• International Finance
• Trade Deficit
• Currency
• Foreign Exchange

The current price of one currency in relation to another

• International Finance
• Trade Deficit
• Currency
• Exchange Rate

When a currency is determined by supply and demand for a currency relative to other currencies

• Forward Rate
• Spot Rate
• Fixed Exchange Rate
• Floating Exchange Rate

When the government (central bank) of a country decides what its currency will be worth relative to other currencies

• Forward Rate
• Spot Rate
• Fixed Exchange Rate
• Floating Exchange Rate

The rate used for immediate delivery of a foreign-exchange contract

• Forward Rate
• Spot Rate
• Fixed Exchange Rate
• Floating Exchange Rate

The rate for currencies exchanged today for delivery in the future, usually up to 180 days

• Forward Rate
• Spot Rate
• Fixed Exchange Rate
• Floating Exchange Rate

The rate a lender charges to a borrower for a loan, presented as a fixed percentage of the total amount borrowed

• GDP
• Spot Rate
• Inflation Rate
• Interest Rate