Lesson 7.01 Try It 1

Vocabulary

Practice the vocabulary words from the lesson.

 

1. The price at which one currency can be exchanged for another
Answer: Exchange Rate

2. A system where the exchange rate is allowed to fluctuate based on supply and demand forces
Answer: Free Floating Exchange

3. A system where a country backs its currency with gold

Answer: Gold Standard

 

4. A system where the exchange rate for a country's currency is constant in relation to other countries

Answer: Fixed Exchange Rate

 

5. A decline in the value of one currency in relation to another currency
Answer: Depreciation

 

6. An increase in the value of one currency in relation to another currency

Answer: Appreciation

7. Foreign goods that are sold domestically
Answer: Imports

 

8. Domestically produced goods that are sold in other countries

Answer: Exports

9. The value of a country's exports minus its imports
Answer: Net Exports