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Define the following terms: Exchange rate, Depreciation of the currency, Devaluation Appreciation, Terms of trade

      

Define the following terms:
- Exchange rate
- Depreciation of the currency
- Devaluation
- Appreciation
- Terms of trade

  

Answers


Dana
Exchange rate is the price of one currency in terms of the currency of another country
Depreciation of the currency is the decline brought about by a market force in the price of a domestic currency in terms of a foreign currency
Devaluation of the currency is a decline brought about by the intervention of the government in the price of a domestic currency in terms of a foreign currency
Appreciation of the currency is the rise brought about by the market forces in the price of a domestic currency in terms of a foreign currency
Terms of trade is the ratio of exchange between the exports and imports of a country

Dana05 answered the question on August 14, 2019 at 07:34


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