EC140 - 2025 - Class 12 - International - B

Nominal Interest Rate

The stated interest rate on a loan or financial product without adjusting for inflation.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Trade Deficit

A situation where a country's imports exceed its exports, resulting in negative trade balance.

Balance of Payments

A statement that summarizes an economy’s transactions with the rest of the world for a specific time period.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Portfolio Investment

Investment in financial assets such as stocks and bonds in a foreign country.

Real Exchange Rate

The exchange rate that has been adjusted for inflation; measures the relative value of currencies.

Depreciation of Currency

A decrease in the value of a currency relative to other currencies.

Appreciation of Currency

An increase in the value of a currency relative to other currencies.

Canadian Dollar (C$)

The official currency of Canada, often denoted as CAD.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net secondary income.

Inflows of Dollars

Money coming into a country, counted positively in the balance of payments.

Exports

Goods or services sold by one country to another.

Imports

Goods or services bought by one country from another.

Clicker Question

A form of interactive assessment in class, often used to gauge understanding or opinion.

Economic Growth

Increase in the production of goods and services in an economy over time, typically measured as GDP.

Interest Rate Policy

Government policy regarding the level of interest rates, aimed at influencing economic activity.

Financial Flows

Movements of money across borders for purposes of investment, trade, or financing.

Trade Surplus

A situation where a country's exports exceed its imports, resulting in a positive trade balance.

Market Demand for Currency

The demand for a currency in the foreign exchange market, driven by trade and investment activities.

Economic Indicators

Statistics that provide information about the economic performance and health of a country.