test reviewer 4

__________market-clearing prices that equilibrate the quantities supplied and demanded of foreign currency.

It is derived from the demand for foreign country’s goods, services, and financial assets.

• foreign currency.

• Exchange Rates

• EQUILIBRIUM EXCHANGE RATES

• Foreign Currency Demand

It is derived from the foreign country’s demand for local goods.

How Exchange Rates Change ?

Give us the 3 main reason how Exchange Rates Change and give brief explanation

It is the link between the domestic and the world

• Currency Appreciation

• World Economy

• Role of Exchange Rates

• Foreign Price

What are Factors that affecting the exchange rate??

Is this statement is true or false ???

This is the impact of exchange rate changes in Currency appreciation

-domestic prices increase relative to foreign prices.

- Exports: less price competitive

- Imports: more attractive

• True

• False

Is this statement is true or false ???

This is the impact of exchange rate changes in Currency depriciation

-domestic prices fall relative to foreign prices.

- Exports: more price competitive

- Imports: more attractive

• True

• False

________ is the official purchases and sales of currencies through the central bank to influence the home exchange rate.

• Goal of Intervention

• Foreign Exchange Market Intervention

______ is to alter the demand for one currency by changing the supply of another

• Goal of Intervention

• Foreign Exchange Market Intervention

• Cheytac Intervention