Economics (9-1) - 0987 CIE

Foreign Exchange Rates

Bayani Gaba-gaba

When you travel abroad and swap your money for foreign cash, you meet the exchange rate: the price of one currency in terms of another. That price is set in a vast global market, and when it moves it changes the cost of every import and export, touching everyone from tourists to giant exporters.

In this lesson you will learn what drives the demand for and supply of a currency, how a floating exchange rate is determined, what makes it rise (appreciate) or fall (depreciate), and how those changes affect the prices and quantities of exports and imports. You will use a demand and supply diagram to bring it all together.

Manufura

  1. trade in goods and services
  2. speculation
  3. government intervention in currency markets
  4. payment of profit, interest and dividends between countries
  5. workers’ remittances
  6. investment in capital goods between countries
  7. definitions of floating exchange rate, appreciation and depreciation
  8. the demand for and supply of a currency
  9. the determination of the equilibrium foreign exchange rate
  10. causes of foreign exchange rate fluctuations - changes in demand for exports and imports - changes in the interest rate - speculation
  11. effects of changes in foreign exchange rates on prices and demand for exports and imports

Takardar Darasi

Exchange rates link a country to the rest of the world. A change in the rate alters export and import prices and so affects firms, jobs and inflation. Being able to analyse why a currency moves, and to trace the effects on trade using a diagram, is a high-value skill that appears regularly in the exam.

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Zazzage manhajar Green Bridge CBT a wayar ka ko kwamfyuta ka don samun cikakkiyar bayanan darasi, tambayoyin aiki, da ƙari.

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Nazarin Darasi

Barka da kammala darasi akan Foreign Exchange Rates. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  1. An exchange rate is the: A. interest rate on foreign loans B. price of one currency in terms of another C. tax on imports D. cost of exports Answer: B
  2. A floating exchange rate is determined by: A. the government alone B. a fixed peg C. the demand for and supply of the currency D. import taxes Answer: C
  3. When a currency appreciates, its value: A. falls B. rises C. stays the same D. becomes zero Answer: B
  4. Using SPICED, a stronger currency makes: A. exports cheaper and imports dearer B. imports cheaper and exports dearer C. both cheaper D. both dearer Answer: B
  5. A rise in a country's interest rate is likely to cause its currency to: A. depreciate B. appreciate C. stay fixed D. disappear Answer: B

Akwai a cikin manhajar Green Bridge

Zazzage manhajar Green Bridge CBT a wayar ka ko kwamfyuta ka don samun cikakkiyar bayanan darasi, tambayoyin aiki, da ƙari.

Cikakkiyar bayanan darasi tare da zane-zane
Mataimakiyar koyo da AI
Yi karatu ba tare da intanet ba, a kowane lokaci, a ko'ina
Akwai a Android, Windows, macOS, da Linux

Akwai a cikin manhajar Green Bridge

Zazzage manhajar Green Bridge CBT a wayar ka ko kwamfyuta ka don samun cikakkiyar bayanan darasi, tambayoyin aiki, da ƙari.

Cikakkiyar bayanan darasi tare da zane-zane
Mataimakiyar koyo da AI
Yi karatu ba tare da intanet ba, a kowane lokaci, a ko'ina
Akwai a Android, Windows, macOS, da Linux

Yi Aikin Tambayoyin Gwaji

Kana son yin aikin tambayoyin gwaji kan Foreign Exchange Rates? Sauke manhajar Green Bridge CBT don samun tambayoyin gwaji da cikakkun jarrabawa akan wannan batu.

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Duk abin da kake buƙata don yin fice a JAMB, WAEC & NECO.

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