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Understanding Exchange Rates: Macro 6.2

Unit 6.2 AP Macro Econ Class Notes

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24 views2 pages

Understanding Exchange Rates: Macro 6.2

Unit 6.2 AP Macro Econ Class Notes

Uploaded by

duckduckgo656
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Name:

Topic:

Date: Exchange Rates


Period:
Chapter / Section / Lesson: Macro 6.2
Questions / Main Ideas /
Notes / Answers / Definitions / Examples / Sentences
Vocabulary

Price of one currency relative to another currency


Exchange Rate Only examine two currencies at a time

Each country must be paid in their own currency


The buyer (importer) must exchange their currency for that of the seller’s
Exports and (exporter)

Imports
The loss of value of a country’s currency with respect to a foreign currency
more units of currency a are needed to buy a single unit of dollar b

Depreciation

The increase of value of a country’s currency with respect to a foreign


currency
fewer units of dollars are needed to buy a single unit of the other
Appreciation currency

if currency a depreciates in relation to currency b, currency b


appreciates in relation to currency a

Every currency is in equilibrium bc set by supply and demand


current market value

© Michelle Wood
Summary

© Michelle Wood

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