ECON102 Chapter Notes - Chapter 25: Foreign Exchange Market, Exchange Rate, Canadian Dollar

62 views5 pages
apricotcaribou323 and 20 others unlocked
ECON102 Full Course Notes
19
ECON102 Full Course Notes
Verified Note
19 documents

Document Summary

Chapter 25: the exchange rate & the balance of payments. Foreign currency the money of other countries regardless of whether that money is in the form of notes, coins, or bank deposits. Foreign exchange market the market in which the currency of one country is exchanged for the currency of another. Foreign exchange rate the price at which one currency exchanges for another in the foreign exchange market. Like all prices, an exchange rate is determined in a market the foreign exchange market. Ca dollar is demanded and supplied by thousands of traders every hour of every day (a competitive market). Currency depreciation fall in the value of one currency in terms of another currency. Currency appreciation rise in value of one currency in terms of another currency. The demand for one money is the supply of another money. People holding money wants to exchange it for ca dollars demand ca dollars & supply their (cid:272)ou(cid:374)t(cid:396)(cid:455)"s (cid:373)o(cid:374)e(cid:455).

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Questions