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Index
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Exchange Rate
Gap-fill exercise
Fill in all the gaps, then press "Check" to check your answers. Use the "Hint" button to get a free letter if an answer is giving you trouble. Note that you will lose points if you ask for hints! You are alloted 3 minutes to complete this excercise
appreciation currencies depreciation devaluation exchange rate fixed float foreign currency managed flexibility supply
When firms import goods and services they must also use
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to pay the country they bought them from. The price of a foreign currency is known as its foreign
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foreign currency
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. That is, its value in terms of other countries’
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. Most currencies are allowed to
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on the foreign exchange market according to the demand and
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of each currency. When the value of a currency falls it is known as a
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of its value. A rise in the price of a currency is known as an
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. Some governments have intervened in the foreign exchange market to fix their own value for their currency. This is known as
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foreign currency
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exchange rate. Sometimes due to changing international markets the governments have to lower the exchange rate which is known as
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foreign currency
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. Governments all control the price of its currency by selling or buying of their currency which is termed as
appreciation
currencies
depreciation
devaluation
exchange rate
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float
foreign currency
managed flexibility
supply
.
Check
OK
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