An ___ reflects the amount of one currency required to purchase one unit of another currency. To put it simply, it is the ___ of foreign currency. This rate is set by ___ in foreign exchange markets....
An ___ reflects the amount of one currency required to purchase one unit of another currency. To put it simply, it is the ___ of foreign currency. This rate is set by ___ in foreign exchange markets. When a currency becomes more valuable in the market, this is called ___; when a currency becomes less valuable, this is called ___.
possible answers:
interest rate
supply and demand
exchange rate
inflation rate
price
depreciation
appreciation
monetary policy
Homework Answers
An exchange rate reflects the amount of one currency required to purchase on unit of another currency. To put it simply, it is the price of foreign currency. This rate is set by supply and demand in foreign exchange markets. When a currency becomes more valuable in the market, this called appreciation ; when a currency becomes less valuable, this is called depreciation.
The exchange rate is the amount of currency required to purchase another currency, and in two-country case, it would be the price of the foreign currency. It is indeed set by the supply and demand of foreign currency. If the value of currency (in terms of the other) increases, it would be an appreciation of currency, while if it decreases, it would be a depreciation.
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An ___ reflects the amount of one currency required to purchase one unit of another currency. To put it simply, it is the ___ of foreign currency. This rate is set by ___ in foreign exchange markets....
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The reflects the rate or amount of U.S. dollars required to purchase one unit of a...
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The reflects the rate or amount of U.S. dollars required to purchase one unit of a foreign currency. indirect rate direct rate European rate equivalent rate
The rate at which a foreign exchange dealer converts one currency into another currency on a particular day is the Multiple Choice o forward exchange rate. O fixed exchange rate. O future exchange rate. o spot exchange rate. O floating exchange rate.
me foreign exchange market is the market in which one currency is exchanged for another, Which of the following is true if the dollar becomes weaker on the foreign exchange market—that is, the value of the dollar falls relative to the value of foreign currency? OA. U.S. citizens will import more goods and services from abroad OB. A BMW automobile produced in Germany will cost less to import into the United States, OC. A trip to Europe will be less...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
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