Chapter 8 Flashcards
(6 cards)
1
Q
The anxiety people often experience when they move from a culture that they are familiar with to one that is entirely different
A
culture shock
2
Q
The international monetary system in place from 1945 to 1971, with par value based on gold and the U.S. dollar
A
Bretton Woods system
3
Q
Exchange rate regime in which the currency’s value is tied to the value of another currency or gold
A
Fixed exchange rate
4
Q
Assets held by a nation’s central bank, used to back up government liabilities
A
Reserves
5
Q
The exchange rate between two currencies for delivery within two business days
A
Spot rate
6
Q
The amount of adjustment that must be made in the exchange rates for two currencies in order for them to have equivalent purchasing power
A
Purchasing power parity (PPP)
