-
Foreign Exchange
currenty and bank deposits that are denominated in foreign money
-
Foreign Exchange Market
gobal market in which people trade once currency for another
-
Exchange Rate
price of one country's money in terms of another country's money
-
Appreciation
- When a currency rises in value in relation to another currency
- as a country's currency appreciates, int'l demand for its product falls
-
Depreciation
- when a currency falls in value in relation to another currency
- as a country's currency depreciates, goods sell for lower prices in other countries & demand increases
-
Balance of Payments
a record of a country's trade in goods, services, and financial assets with the rest of the world
-
Double-entry Bookkeeping
a systems of accounting in which every transaction is recorded in a least 2 accounts
-
Current Account
sum of the merchandise, services, income and unilateral transfers accounts in the balance of payments
-
Surplus vs. Deficit
- Surplus = amount by which credits exceed debits
- Deficit = amount by which debits exceed credits
-
Balance of Trade
balance in the merchandise account in a nation's balance of payments
-
Financial Account
record in the balance of payments of the flow of financial assets into and out of a country
|
|
