Mgmt 425 Ch 10

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jessenliz2010
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301942
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Mgmt 425 Ch 10
Updated:
2015-05-02 01:10:51
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Mgmt 425
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Mgmt 425
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Mgmt 425 Ch 10
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  1. intentionally lowering the value of a nation's currency
    devaluation
  2. intentionally raising the value of a nation's currency
    revaluation
  3. principe that an identical item must have an identical price in all countries when the price is expressed in a common currency
    law of one price
  4. principle that the nominal interest rate is the sum of the real interest rate and the expected rate of inflation over a specific period
    Fisher effect
  5. principle that a difference in nominal interest rates supported by two countries' currencies will cause an equal but opposite change in their spot exchange rates
    international Fisher effect
  6. view that prices of financial instruments reflect all publicly available information at any given time
    efficient market view
  7. view that prices of financial instruments do not reflect all publicly available information
    inefficient market view
  8. technique that uses statistical models based on fundamental economic indicators to forecast exchange rates
    fundamental analysis
  9. technique that uses charts of past trends in currency prices and other factors to forecast exchange rates
    technical analysis
  10. collection of agreements and institutions that govern exchange rates
    international monetary system
  11. international monetary system in which nations link the value of their paper currencies to specific values of gold
    gold standard
  12. system in which the exchange rate for converting on currency into another is fixed by international agreement
    fixed exchange-rate system
  13. agreement (1944) among nations to create a new international monetary system based on the value of the U.S. dollar
    Bretton Woods Agreement
  14. economic condition in which a trade deficit causes a permanent negative shift in a country's balance of payments
    fundamental disequilibrium
  15. IMF asset whose value is based on a "weighted basket" of four currencies
    special drawing right (SDR)
  16. agreement (1971) among IMF members to restructure and strengthen the international monetary system created at Bretton Woods
    Smithsonian Agreement
  17. agreement (1976) among IMF members to formalize the existing system of floating exchange rates as the new international monetary system
    Jamaica Agreement
  18. exchange-rate system in which currencies float against one another, with governments intervening to stabilize their currencies at particular target exchange rates
    managed float system
  19. exchange-rate system in which currencies float freely against on another, without governments intervening in currency markets
    free float exchange
  20. monetary regime based on an explicit commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate
    currency board
  21. The international monetary system where gold is money and central banks kept wealth in gold with gold-backed notes
    Gold Standard (Past -> WWI 1918)
  22. The international monetary system that was based on a "print and spend" mentality
    1918 - 1945
  23. The international monetary system that is headed by the IMG and the World Bank; the $ became a central reserve asset, and world international currency; all currencies were given values in terms of the $
    Gold Exchange Standard (1945 > 1971)
  24. International monetary system in which sigma hard currencies as central reserve assets; rates are determined by supply and demand
    Jamaica Agreement

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