Foreign Exchange Market
Studied by 0 people
Call with Kai
Knowt Play
Learn
Practice Test
Spaced Repetition
Match
Flashcards1/7
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
8 Terms
Direct method
Exchange rate is the domestic price of foreign currency (we demand dollar)
Demand for foreign currency
Purchase of foreign goods and services by local residents
Foreign investment by local residents
Foreign currency speculation
Local residents going on overseas trips
Indirect method
An exchange rate is the foreign price of domestic currency
Demand for local currency
Purchase of local goods and services by foreigners
Purchase of domestic financial/real assets by foreign investors
Domestic currency speculation by foreign speculators
Foreign tourists visiting South Africa
Fixed Exchange Rate System
Keeps value of currency at certain level
Free-floating exchange rate system
Purely determined by demand and supply
Managed/controlled floating exchange rate system
Value of currency from day-to-day is determined by demand and supply
Note 
Flashcards (58)