Test 3 Study Guide

Test 3 Study Guide - Test 3 Study Guide MAN 3600 Chapter...

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Test 3 Study Guide – MAN 3600 Chapter 10 : The International Monetary and Financial Environment 1. Exchange rate : The price of one currency expressed in terms of another. It is the number of units of one currency that can be exchanged for another. 2. Currency risk : Risk that arises from changes in the price of one currency relative to another. 3. Foreign exchange : All forms of money that are traded internationally, including foreign currencies, bank deposits, checks, and electronic transfers. 4. Foreign exchange market : The global marketplace for buying and selling national currencies. 5. Central bank : The monetary authority in each nation that regulates the money supply and credit, issues currency, and manages the exchange rate of the nation’s currency. 6. Trade surplus : The amount by which a nation’s exports exceed its imports for a specific period of time. 7. Trade deficit : The amount by which a nation’s imports exceed its exports for a specific period of time. 8. Devaluation : Government action to reduce the official value of its currency, relative to other currencies. 9. Balance of payments : The annual accounting of all economic transactions of a nation with all other nations. 10. International Monetary Fund (IMF) : An international agency that aims to stabilize currencies by monitoring the foreign exchange systems of member countries, and lending money to developing economies. 11. World Bank : An international agency that provides loans and technical assistance to low and middle-income countries with the goal of reducing poverty. 12. International monetary system : Institutional framework, rules, and procedures by which national currencies are exchanged for one other. 13.
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This note was uploaded on 05/04/2011 for the course MAN 3600 taught by Professor Knight during the Spring '11 term at FSU.

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Test 3 Study Guide - Test 3 Study Guide MAN 3600 Chapter...

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