Factor influencing exchange rates

0.0(0)
studied byStudied by 0 people
0.0(0)
full-widthCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/4

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

5 Terms

1
New cards

Factors influencing exchange rates

Changes in supply and demand of currency

2
New cards

Factors that change supply and demand of currency

Imports/exports, speculation, relative interest rate, relative inflation rate, FDI, quantitative easing

3
New cards

Speculation

When investors predict changes in a currency’s exchange rate to make a profit (Speculation of future appreciation cause present appreciation)

4
New cards

Quantitative easing

Extreme monetary policy used when central bank wants to grow the economy but can’t decrease the interest rate as it is already very low

5
New cards

Impact of changes in exchange rates

growth/employment, inflation, FDI flow, current account