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17 Cards in this Set

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1.What is meant by the term “balance of payments”?
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2.What is the difference between the current account and the capital and financial account?
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3.What is the difference between a trade deficit and a trade surplus?
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4.What are official reserves?
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5.What is the difference between a flexible exchange rate system and a fixed exchange rate system?
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6.What does it mean when currencies appreciate or depreciate in value?
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7.What factors are responsible for determining exchange rates?
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8.What is the purchasing-power-parity theory?
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9.Identify some of the advantages and disadvantages of flexible exchange rates.
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10.How did the fixed exchange rate system work?
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11.What are currency interventions?
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12.Describe “exchange controls”.
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13.What is the Bretton Woods system?
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14.Describe the characteristics of the managed float exchange rate system.
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15.What is the current size of the U.S. trade deficit? List some of the factors that contributed to this deficit.
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16.Identify some of the economic consequences of the U.S. trade deficit.
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17.(THE LAST WORD) Speculation in Currency Markets
Describe currency speculation. Who engages in it?
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