Foreign Exchange Market

What is it called when the value of a currency decreases relative to another currency; a currency depreciates when you need less of another currency to buy a single unit of a currency?

• Currency fluctuation
• Currency depreciation
• Currency stabilization
• Currency appreciation

What is a description of the willingness to buy a currency based on its exchange rate; for example, as the exchange rate for Euros increases, the quantity demanded of Euros decreases?

• Demand for currency

• Law of scarcity
• Demand for equilibrium

• Law of supply

When the exchange rate of a currency increases, other countries will want more of that currency.

• TRUE

• FALSE

Like any surplus, the equilibrium rate will place downward pressure on the price. If the exchange rate is flexible, then the exchange rate will decrease until the quantity supplied is equal to the quantity demanded.

• TRUE

• FALSE

What is it called when the exchange rate of currencies are determined in free markets by the interaction of supply and demand?

• floating exchange rate
• centralized exchange rate
• pegged exchange rate
• fixed exchange rate

• It might seem like a time saver to take short-cuts on labeling graphs, but this is never a good idea. Take your time labeling the foreign exchange market carefully using the elements of a market. What are they?

• Market makers, investors, exchange rate, stock price
• Demand, supply, quantity and price

• Buyers, sellers, interest rate, quantity of currency
• Traders, brokers, interest rate, stock price

What is it called when the price of one currency in terms of another currency; for example, if the exchange rate for the Euro (€€€€) is 132 Yen (¥¥¥), that means that each Euro that is purchased will cost 132 yen.

• Exchange rate
• Money exchange
• Price ratio
• Currency rate

Please draw a stock symbol of your choice.

What is the state flower of Texas?

• Bluebonnet
• Rose
• Daisy
• Sunflower

What year will you graduate?

• 2025
• 2023
• 2024
• 2022