Tuesday, May 9, 2017


May 08, 2017
Foreign exchange
  • The buying and selling of currency
  • Any transaction that occurs in the balance of payments necessitates foreign exchange
  • The exchange rate is determined in the foreign currency market
Changes in exchange rates
  • Exchange rates are a function of the supply and demand for currency
  • An increase in the supply of a currency will decrease the exchange rate of a currency
  • A decrease in supply of a currency will increase the exchange rate of a currency
  • An increase in demand for a currency will increase the exchange rate of a currency
  • A decrease in demand for a currency will decrease the exchange rate of a currency
Appreciation
  • When the exchange rate of a currency increases
Depreciation
  • Occurs when the exchange rate of that currency decreases
Exchange rate determinants
  • Relative price level
  • Speculation

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1 comment:

  1. Brittany O.May 18, 2017 at 10:25 PM

    Hey Vivian, I like how straight to the point your blog is,its breaks down all the hard parts for me, and that's what I really enjoyed it and the video was a great way to end the notes, great job!

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