Set world oil prices since they are so large When exchange place btwn Price of one Foreign residents of country’s currency in country, exchange rate terms of another one money currency has to be exchanged for another Current involve Summary of payments – Balance of trade to foreigners for payments imports and receipts Capital involve – from foreigners for financial assets exports Paying out more abroad than we take in an excess of Imports more than expenditure or Deficit exports liabilities over income or assets in a Price of currency will given period rise Depreciation of US dollar Receiving more from abroad than we are spending Situation where quantity supplied is Surplus greater than quantity Exports larger than imports demanded at a given price Appreciation of US dollar & depreciation of foreign currency An increase in the Appreciate value of an asset over Value goes up time. Gradual wear on goes depreciate capital goods during down production
Set world oil prices since they are so large Foreign exchange rate Price of one country’s currency in terms of another currency When exchange place btwn residents of country, one money has to be exchanged for another Balance of payments Summary of payments to foreigners for imports and receipts from foreigners for exports Current – involve trade Capital – involve financial assets Deficit an excess of expenditure or liabilities over income or assets in a given period Paying out more abroad than we take in Imports more than exports Price of currency will rise Depreciation of US dollar Surplus Situation where quantity supplied is greater than quantity demanded at a given price Receiving more from abroad than we are spending Exports larger than imports Appreciation of US dollar & depreciation of foreign currency Appreciate An increase in the value of an asset over time. Value goes up depreciate Gradual wear on capital goods during production goes down
econ_key_terms.docx