exchange rate Flashcards
1
Q
exchange rate
A
the price of one currency in terms of another currency
2
Q
exchange rate demand curve
A
demand for pounds (any currency) from overseas economic group
3
Q
a rise in the exchange rate is caused by…
A
increase in demand for a currency
decrease in supply of the currency
4
Q
demand for pound may increase if:
A
.UK goods become more desirable
.income rises in the eurozone
.interest rates in the UK rise relative to other countries
.eurozone speculators predicting value of the pound will increase
more attractive for investment (reduced corporation tax or increase productivity)
