Podcast
Questions and Answers
What is the purpose of the euro?
What is the purpose of the euro?
To facilitate trade and movement across borders through reduced transaction costs and elimination of exchange rate uncertainty
What is a managed floating currency exchange rate agreement?
What is a managed floating currency exchange rate agreement?
When a country uses a combination of government intervention and market forces to set exchange rates
What is a pegged currency exchange rate agreement?
What is a pegged currency exchange rate agreement?
When the value of a currency is fixed or tied to another currency or commodity
If supply outstrips demand, what will happen to the free floating currency?
If supply outstrips demand, what will happen to the free floating currency?
If demand outstrips supply, what will happen to the free floating currency?
If demand outstrips supply, what will happen to the free floating currency?
Flashcards
Purpose of the Euro?
Purpose of the Euro?
To facilitate trade and movement across borders through reduced transaction costs and elimination of exchange rate uncertainty.
Managed Floating Currency Exchange Rate Agreement
Managed Floating Currency Exchange Rate Agreement
When a country uses a combination of government intervention and market forces to set exchange rates.
Pegged Currency Exchange Rate Agreement
Pegged Currency Exchange Rate Agreement
When the value of a currency is fixed or tied to another currency or commodity.
Supply Outstrips Demand (Free Floating Currency)
Supply Outstrips Demand (Free Floating Currency)
Signup and view all the flashcards
Demand Outstrips Supply (Free Floating Currency)
Demand Outstrips Supply (Free Floating Currency)
Signup and view all the flashcards
