econ 2

A record of the economic transactions b/w the residents of one country and the rest of the world.

the monetary value of the international flows associated with transactions in goods, services, income flows, and unilateral transfers.

the movement of financial assets among official holders pg 342

holding key foreign currencies, special drawing rights, and reserve positions in the IMF by official monetary institutions

market where foreign exchanges are traded.

When it takes more units of a country;s currency to to purchase a unit of some foreign currency

When it takes fewer units of a nations currency to purchase a unit of some foreign currency.

The rates of two currencies as expressed ina third currency

made by those who will receive or make payments in foreign exchange in the weeks or months ahead.

The process of avoiding or covering a foreign exchange risk

process of moving funds into foreign currencies to take advantage of higher investment yields abroad while avoiding risk.

idea that identical goods should cost the same in all nations assuming it is costless to ship goods, and there are no trade barriers.