Economics- Edexcel 4.1.8
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| show | the rate or price at which one country’s currency can be exchanged for other currencies in the foreign exchange market
🗑
|
||||
| show | a weighted index of sterling’s value against a basket of currencies where the weights are based on the importance / share of trade between the UK and each country
🗑
|
||||
| main exchange rate systems | show 🗑
|
||||
| show | where the external value of a currency depends wholly on market forces of supply and demand (there is no central bank intervention to influence a currency’s price)
🗑
|
||||
| show | when the central bank may choose occasionally to intervene in foreign exchange markets to influence/move the value of a currency to meet specific macroeconomic objectives
🗑
|
||||
| fixed exchange rate system | show 🗑
|
||||
| show | a fall in the value of a currency in a floating exchange rate system
🗑
|
||||
| show | a fall in the value of a currency in a fixed exchange rate system
🗑
|
||||
| show | a rise in the value of a currency in a floating exchange rate system
🗑
|
||||
| show | a rise in the value of a currency in a fixed exchange rate system
🗑
|
||||
| demand for a currency | show 🗑
|
||||
| demand for a currency in the foreign exchange market is derived from | show 🗑
|
||||
| investors tend to demand which currencies | show 🗑
|
||||
| supply of a currency | show 🗑
|
||||
| show | by level of domestic demand for / expenditure on imported goods and services from aboard or speculative outflows of a country’s currencies on the FX markets
🗑
|
||||
| free-floating currency system | show 🗑
|
||||
| show | the strength of currency S & D drives the external value of a currency in the markets and the currency appreciates or depreciates
🗑
|
||||
| show | trade or current account balances/FDI/portfolio investment/interest rate differentials
🗑
|
||||
| show | countries that have strong trade and current account surpluses tend to see their currencies appreciate as money flows into the circular flow from exports of goods and services and from inflows of investment income
🗑
|
||||
| show | strong inflows of portfolio investment into equites and bonds from overseas can cause a currency to appreciate
🗑
|
||||
| show | an economy that attracts high net inflows of capital investment from overseas will see an increase in currency demand and a rising exchange rate
🗑
|
||||
| show | countries with relatively high interest rates can expect to see ‘hot money’ flowing coming in and causing an appreciation of the exchange rate
🗑
|
||||
| show | an exchange rate regime in which the exchange rate is neither entirely free (or floating) nor fixed
🗑
|
||||
| banks intervene to influence the price by | show 🗑
|
||||
| monetary policy in a country with a managed floating system | show 🗑
|
||||
| show | changes in monetary policy interest rates/quantitative easing/direct buying or selling in the currency market (intervention)/taxation of overseas currency deposits and capital controls
🗑
|
||||
| competitive devaluations | show 🗑
|
||||
| show | when faced with a deflationary recession or to attract FDI
🗑
|
||||
| competitive devaluations other name | show 🗑
|
||||
| show | seen as a form of trade protectionism that invites retaliatory action and go against principles of trade based on comparative advantage
🗑
|
||||
| show | government or central bank fixes the currency value/pegged exchange rate becomes the official rate/adjustable currency peg system
🗑
|
||||
| show | a foreign currency that is held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves
🗑
|
||||
| ways exchange rates impact business activity | show 🗑
|
||||
| SPICED | show 🗑
|
||||
| evaluating effects of a currency depreciation | show 🗑
|
||||
| advantages of floating exchange rates | show 🗑
|
||||
| show | no guarantee that floating exchange rates will be stable/volatility may be detrimental to attracting FDI/lower exchange rates don’t correct a persistent current account deficit
🗑
|
||||
| advantages of fixed exchange rates | show 🗑
|
||||
| disadvantages of fixed exchange rates | show 🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
jessharris
Popular Economics sets