Level 3 Level 5
Level 4

How important is the value of a currency?


9 words 0 ignored

Ready to learn       Ready to review

Ignore words

Check the boxes below to ignore/unignore words, then click save at the bottom. Ignored words will never appear in any learning session.

All None

Ignore?
Exchange rate
How much of one currency needs to be given up to buy one unit of another currency
Floating exchange rate
Where the prices of two currencies are decided by market forces
Fixed exchange rate
Where the central bank of a country tries to decide the price of their currency
International competitiveness
The ability of companies to compete with companies from other countries
Strong pound
This means that our imports are cheaper and our exports are more expensive
Weak pound
This means that our exports are cheaper and imports are more expensive
Depreciation
When the currency starts to get weaker in the market
Appreciation
When the currency starts to get stronger in the market
Elasticity of imports and exports
How responsive demand will be for imports and exports to a change in price (linked to exchange rate movements)