Exam2 - FC3 - The flashcards are formatted for printing....

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Pegged Currencies Free Floating Currencies
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In the marketplace, people are screaming and yelling at you to come up with a price to exchange currency; currency prices are instantly updating and reflect accurate market price (closest to Country says they’re not big or strong enough, so they pick a strong currency and put it against it (i.e. 2 Panamanian dollars to 1 US dollar).
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“perfect markets”).
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Dollars; Won; Increase; Decrease; Increase Banded Peg Currencies
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The country defines an interval; if currency moves above or below it, the country uses its currency to bring it back in line. With banded peg in China, if the won drops below the desired range, the government would use ____ to buy ____ and ____ the supply of dollars in the market and ____ the supply of won; therefore, the
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value of the dollar to the won would ____.
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Non-Convertible Currencies Won; Dollars; Decrease; Increase; Decrease
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With banded peg in China, if the won rises above the desired range, the government would use ____ to buy ____, and ____ the supply of dollars in the market and ____ the supply of won; therefore, the value of Say you can’t use the currency anywhere else in the world.
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the dollar to the won would ____.
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Over the Counter (OTC) Currency Market 1. Free floating 2. Pegged 3. Banded peg 4. Non- convertible
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Exchange rate types: Everyone can trade currency, and each market trades independently with different prices; includes all major banks of the work where prices are different everywhere.
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Over the Counter (OTC) and Exchange Traded Exchange Traded Currency Market
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This note was uploaded on 09/08/2011 for the course GEB 3375H taught by Professor Robertsweo during the Spring '11 term at University of Central Florida.

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Exam2 - FC3 - The flashcards are formatted for printing....

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