Exchange Rates

Front

What is an exchange rate?

Back

The price of one nation's currency in terms of another's.

Front

According to the table, what is the Euro equivalent of 1 USD?

Back

.76 Euros

Front

How is an exchange rate determined in the money market?

Back

The forces of supply and demand

Front

Why do changing exchange rates help one country and hurt the other?

Back

One side loses purchasing power and the other gains it

Front

If the US $ were to appreciate in relation to the Euro, what effect would this have?

Back

US consumers can buy more European goods and services for fewer $$.

Front

How does inflation rate affect currency value/exchange rate?

Back

Higher inflation leads to depreciating currency & vice versa

Front

If the Mexican Peso depreciates in relation to the Chinese Yuan, how is Mexico affected?

Back

Mexico has less purchasing power in Chinese currency

Front

In 2009 the exchange rate of the Singapore dollar changed from 1.49 = 1 US dollar to 1.43 Singapore dollars = 1 US dollar. How would this affect the import prices and export prices for Singapore?

Back

decrease/increase

Front

What does it mean when an economist says a currency is stronger?

Back

It can be exchanged for more of a lesser foreign currency

Front

If you are going to visit America and have $2999 to spend, how much currency could you obtain? (1AUD = 0.68USD)

Back

= 2999 x 0.68