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What is an exchange rate?

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The price of one currency in terms of another currency.

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How is the exchange rate usually expressed?

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In terms of US dollars, as the dollar is the most widely used currency for international transactions.

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What is a floating exchange rate?

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An exchange rate determined by the market forces of demand and supply.

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What is depreciation in currency terms?

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A fall in the value of a currency, causing a reduction in export prices in terms of foreign currencies and a rise in import prices in terms of the domestic currency.

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What is appreciation in currency terms?

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An increase in the value of a currency, causing an increase in export prices in terms of foreign currencies and a fall in import prices in terms of the domestic currency.

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What is a hot money flow?

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A short-term movement of money between countries.