Tuesday March 12

New Concepts:

• Exchange Rates
• Fixed
• Revaluation and Devaluation
• Floating and Managed
• Appreciation and Depreciation

• Factors That Effect Exchange Rates (Determinants of Exchange Rates)
• Interest Payments
• Inflation
• Speculation
• Use of  Foreign Currency Reserves

• Government Intervention into exchange rates
• Why and how?

Resources:
Power Point - Exchange Rates

Video - Exchange Rates

Video - Factors that effect exchange rates

Homework:

Chapter 23 in textbook