The rate at which goods are exchanged between two countries

The price of one nation's currency in terms of another's

How many US dollars you can exchange for RMB at Travelex

The price of goods in terms of a foreign currency

The forces of supply and demand

Government/the Federal Reserve Bank

Whatever sellers of goods are willing to take

Investors decide the value of the currency they wish to invest

One side loses purchasing power and the other gains it

Takes money away from one side and gives it to the other

Causes war between the two countries

One country's government introduces tariffs to protect local industries

Flexible

Floating

Fictitious

Fixed

Government sets rate vs market sets rate

Doesn't exist vs does exist

Never changing vs always changing

Currency never appreciates vs can appreciate

European consumers would have more purchasing power in US

US consumers can buy more European goods and services for fewer $$

US consumers can buy more English goods and services for fewer $$

European tourists to the US will spend more $$

Higher inflation leads to depreciating currency & vice versa

Increasing inflation leads to more favourable exchange rates

Higher inflation leads to currency appreciation

Lower inflation leads to more favourable exchange rate

Mexico has less purchasing power in Chinese currency

Mexico benefits from increased purchasing power

Mexico would have more Chinese investors

They would be invaded by China

Botswana’s level of protection would fall.

Botswana’s tourists travelling to South Africa would find it less expensive

South Africa’s imports would be cheaper.

South Africa’s tourists travelling to Botswana would receive more pula per rand

a fall in its exports of goods and services

a fall in its imports of goods and services

a fall in its inflow of income

a rise in its outflow of transfers

Imported goods would become cheaper for local people.

The country would definitely become poorer.

The price of fish sold as exports would become cheaper.

Tourists to the country would be discouraged by higher prices.

help to reduce a US trade deficit.

increase the foreign price of US exports.

reduce the price of US imports.

reduce US inflation

decrease/decrease

decrease/increase

increase/decrease

increase/increase