Foreign Exchange (FOREX) The buying and selling of currency – Ex. In order to purchase souvenirs in France, it is first necessary for Americans to sell.

Slides:

Advertisements

Similar presentations

Please read this slowly to yourself. THINK about it. Ever been out of the country? Ever bought something from another country? Then you were part of the.

Advertisements

Mechanics of Foreign Exchange (FOREX)

Please read this to yourself. Ever been out of the country? Ever bought something from another country? When you bought goods/services in that foreign.

 Exchange Rate: S - # of domestic currency units purchased for 1 US$.  An increase in S is a depreciation of domestic currency and a decrease in S is.

International Trade Mechanics of Foreign Exchange (FOREX)

FOREIGN CURRENCY AND FOREIGN EXCHANGE SIMULATION & OVERVIEW International Trade.

Ch. 29: Open Economy: Foreign Exchange. The Prices for International Transactions: Real and Nominal Exchange Rates Nominal Exchange Rates: Rate you can.

Lesson 14 – Money around the world

 We have several different exchange rates, one for each currency.  It measures how much we would get in terms of the other currency per $1 NZ.

International Trade. Exports v. Imports Exports – goods sold to other countries Imports - goods bought from other countries.

Chapter 6 Foreign Exchange. Exchange Rates – Rates at which two currencies trade. One currency in terms of another.. –Defining exchange rates The exchange.

Chapter 5 Presentation 3 Exchange Rates. Exchange Rate The rate at which the currency of one country can be exchanged for the currency of another

Foreign Exchange Exchange Rate = Relative Price of Currencies.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies.

Practice 1. U.S. income increase relative to other countries. Does the balance of trade move toward a deficit or a surplus? -U.S. citizens have more disposable.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies.

Exchange Rates An exchange rate is simply the PRICE at which ONE CURRENCY can be TRADED FOR ANOTHER. Exchange rates are determined by DEMAND and SUPPLY.

Foreign Exchange Rates Flexible Exchange Rates Uses demand and supply to determine the value of one nation’s currency compared to another nation’s Equilibrium.

MECHANICS OF FOREIGN EXCHANGE (FOREX). FOREIGN EXCHANGE (FOREX) The buying and selling of currency Ex. In order to purchase souvenirs in France, it is.

Foreign Exchange (aka. FOREX)

ECO 473 Foreign Exchange Markets Answer Key Spring 2009 – Dr. D. Foster.

The Determination of Exchange Rates. Part I. Equilibrium Exchange Rates I. SETTING THE EQUILIBRIUM A. The exchange rate is the price of one unit of foreign.

Unit 5-2 Foreign Exchange (aka. FOREX)

1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern CHAPTER International Finance Macro.

Exchange Rate To be able to identify weak and strong currencies To understand the impact of a currencies strength on its balance of trade.

International Trade Mechanics of Foreign Exchange (FOREX)

What are exchange rates? An exchange rate is the price of one countries currency in relation to that of another. e.g. £1 = $1.6

FOREIGN EXCHANGE (FOREX) STANDARDS: SSEIN3A-D GOALS: 1) I WILL BE ABLE TO DEFINE AND COMPUTE EXCHANGE RATES. 2) I WILL BE ABLE TO LOCATE & INTERPRET FOREX.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies Copyright ACDC Leadership 2015.

Section 3: International Economics 3.2 Exchange Rates.

Foreign Exchange (aka. FOREX)

AP Macroeconomics Mechanics of Foreign Exchange (FOREX) &list=PL04578C46EDAB7734.

Foreign Exchange Market (FOREX, FX)

1 Objective – Students will be able to answer questions regarding foreign exchange. SECTION 1 Chapter 38- Foreign Exchange © 2001 by Prentice Hall, Inc.

Foreign Exchange (FOREX) The buying and selling of currency – Ex. In order to purchase souvenirs in France, it is first necessary for Americans to sell.

EXCHANGE RATE The price at which one currency can be exchanged/traded for another.

Unit 26.  What is the base interest rate?  What is the variable interest rate?  What is the exchange rate to Euros?  What is the exchange rate.

International Trade. I. Trade Deficits and Surpluses A. A Trade Surplus exists when a nation exports more goods and services than it imports A. A Trade.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies.

Foreign Exchange (aka. FOREX) Exchange Rate = Relative Prices of Currencies Copyright ACDC Leadership 2015.

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

Trade Surplus Trade Deficit Foreign Exchange Markets.

AP Macroeconomics Mechanics of Foreign Exchange (FOREX)

AS Economics PowerPoint Briefings 2007 tutor2u ™ tutor2u ™ Exchange Rates.

Foreign Exchange (aka. FOREX)

Foreign Exchange (aka. FOREX)

Foreign Exchange (aka. FOREX)

BALANCE OF PAYMENT & EXCHANGE RATE

Learning Objective: Today I will be able to compare exchange rates and the currency standards by searching currency rates online Agenda: Learning Objective.

Mr. Raymond AP Macroeconomics

Mr. Mayer AP Macroeconomics

Mechanics of Foreign Exchange (FOREX) (Courtesy of Mr. Mayer)

Foreign Exchange (aka. FOREX)

Foreign Exchange (aka. FOREX)

Mechanics of Foreign Exchange (FOREX)

Foreign Exchange (aka. FOREX)

Foreign Exchange (aka. FOREX)

International Trade Foreign Exchange.

Foreign Exchange (aka. FOREX)

Foreign Exchange Markets

Exchange Rate = Relative Price of Currencies

Coach Saucedo AP Macroeconomics

Foreign Exchange (aka. FOREX)

Foreign Exchange (aka. FOREX)

Foreign Exchange Markets

International Economics

Mr. Mayer AP Macroeconomics

Mechanics of Foreign Exchange (FOREX)

Mechanics of Foreign Exchange (FOREX)

Mechanics of Foreign Exchange (FOREX)

Presentation transcript:

Foreign Exchange (FOREX) The buying and selling of currency – Ex. In order to purchase souvenirs in France, it is first necessary for Americans to sell their Dollars and buy Euros.

FOREX cont. The exchange rate (e) is determined in the foreign currency markets. -Ex. In the U.K. the exchange rate for the British Pound is about 1.78 Simply put. The exchange rate is the price of a currency.

Changes in Exchange Rates Exchange rates (e) are a function of the supply and demand for currency. – An increase in the supply of a currency will decrease the exchange rate of a currency – A decrease in supply of a currency will increase the exchange rate of a currency – An increase in demand for a currency will increase the exchange rate of a currency – A decrease in demand for a currency will decrease the exchange rate of a currency

Appreciation and Depreciation Appreciation of a currency occurs when the exchange rate of that currency increases (e↑) Depreciation of a currency occurs when the exchange rate of that currency decreases (e↓)