macroeconomics chapter 6

Foreign money,including paper money and bank deposits that are denominated in foreign currency 

• depreciate

• Foreign exchange 

• Balance of payment accounting 

• Foreign exchange market 

A global market in which people  trade one currency for another 

• Foreign exchange 

• Financial account 

• Balance of payment accounting 

• Foreign exchange market 

The price of one countries currency in terms of another country's currency 

• Exchange rate 

• Financial account 

• Foreign exchange 

• Credit

How much US dollars would I need to buy to buy one foreign countries money

• Currency per US dollar

• depreciate

• US dollar per currency 

How much US dollars would i exchange for another countries currency 

• US dollar per currency 

• Current account 

• Currency per US dollar

• Balance of payment accounting 

A currency is said to ----- when it buys more of a foreign currency 

An ------  of  nations currency will make a foreign goods cheaper 

This would likely cause an increase in imports and a decline in esports 

The currency is stronger in value than the other countries currency 

Stronger the currency can buy more goods 

A currency is said to be ---- when it buys less of a foreign currency 

A depreciation of a nationals currency will make foreign goods more expensive 

This would most likely cause a decreases in imprints and an increase in exports 

Law of supply and demand determines this 

A record of a country's trade in goods,services,and financial assets with the res if the world 

Keeps record of all the cash that goes in and out 

The balance of payments accounting id double entry-a system of accounting in which 

Every transaction is recorded in at least two accounts and the debit totals must equal to the credit totals for each transaction 

• Double entry bookkeeping 

• Exchange rates 

• Balance of payment accounting