what is fixed exchange rate?

a government decides to establish and maintain its currency

what is rate of exchange?

price of a nation's currency can be bought using another

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Chapter 33 Financing International Trade

15 termsStudBud Administration12 plays

a #economics #blindquiz to introduce the basics of #FinancingInternationalTrade to #grade12

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Questions 15

Answers

1
an institution or system for dealing in the currency of other countries
fixed exchange rates
rate of exchange
foreign exchange
euro
2
what is competitiveness?
ability to work
ability to share money
ability to compete with others
ability to trade
3
what is the formal name of money?
cash
bucks
euro
currency
4
South Africa currency is called rand
False
True
5
what is the peso (mexico) worth in the U.S as of 2005?
$1.00
$0.50
$0.09
$0.70
6
the rate of increase in prices in a country is known as
exchange rate
economic rate
intrest rate
inflation rate
7
What's a basic rule of balance of payments?
use a T table
must sum to zero
use a C account
Liabilities on left, assets on right
8
what is fixed exchange rate?
a government decides to cut exports
a government decides to limit trade
a government sells goods
a government decides to establish and maintain its currency
9
the exchange of goods and services between countries
international trade
financing
fixed exchange
supply and demand
10
a regime where the currency price is set by the forex market based on supply and demand
competitiveness
floating exchange rates
balance of payments
payments
11
where is euro used?
Africa
Europe
United States
Mexico
12
what is the difference between a country's exports and imports of goods?
trade balance
monetary policy
transaction summary
fiscal policy
13
the exchange rate never changes
False
True
14
what is rate of exchange?
price of a nation's currency can be bought using another
price of a nation's goods
amount of goods produced
amount of trade in the year
15
What does NOT affect the exchange rate?
economics
country's language
trade agreements
state of war or peace

Chapter 33 Financing International Trade Flashcards | StudBud