BUS 313 Week 2

Exchange Rates
- Unit of foreign currency per unit of domestic currency
- allow us to determine cost or price of good in a common currency
Depreciation

Decrease in value of a currency relative to another
Appreciation

Increase in value of a currency relative to another
When depreciation occurs

domestic goods and services are cheaper for foreigners
When Appreciation occurs

domestic goods and services are more expensive for foreigners
What happens to a currency when demand increases?

It appreciates
What happens to a currency when supply increases

it depreciates

Author

jo73

331855

Card Set

BUS 313 Week 2

Description

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Updated

2017-05-30T21:08:41Z