Unit 10: Foreign Exchange Rates and the Balance of Payments

Introduction

What’s in This Chapter? A pound of strawberries sells for $3 this week and $2.50 next week. A dollar exchanges for 100 Japanese yen one week and 102 Japanese yen the next week. Strawberries decrease in price when they are...

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Section 1: Foreign Currency Exchange Rates

Purchasing Foreign Currency Most countries exchange many goods and services with other countries. Usually, before a product can be purchased from a foreign country, the buyer needs to buy the foreign country’s currency....

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Section 3: The Balance of Payments

A Country’s Inflows and Outflows of Funds Countries that engage in international trade experience inflows and outflows of products, services, currency purchases, and investments. The accompanying flows of money used to pay...

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Test Your Knowledge!

  Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already...

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