APMac Unit 6 Lesson 2 - Exchange Rates and the Foreign Exchange Market by jclerch https://padlet.com/jclerch/h11cmquyhivg Open Economy - International Trade and Finance en-us 2017-01-01 18:02:29 UTC 2025-11-10 13:41:27 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/2197951b97a981084b076bda48ea68de/IMG_12291_1mb.png jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/152410591 2017-02-08 10:40:15 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/152410591 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/160245531 2017-03-15 13:42:05 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/160245531 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/160245749 2017-03-15 13:42:48 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/160245749 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/160246045 2017-03-15 13:43:52 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/160246045 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/160246471 2017-03-15 13:45:20 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/160246471 Lesson Questions jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/245831102 1. Can you draw the foreign exchange graph for a country’s currency? 

2. What is appreciation and how is it different than depreciation? 

3. What are the main factors that will cause the appreciation or depreciation of a currency?

4. What is the difference between a floating rate and a managed rate? 

5. What is the difference between revaluation and devaluation when discussed a fixed exchange rate?

6. How does a persistent financial (capital) account surplus affect a country’s exchange rate?

7. How does appreciation of a currency (as well as depreciation) affect a country’s imports and its exports? 
]]> 2018-03-25 14:32:29 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/245831102 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/372297624 2019-07-25 16:39:21 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/372297624 Essential Knowledge jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/372387825 In the foreign exchange market, one currency is exchanged for another; the price of one currency in terms of the other is the exchange rate.

If one currency becomes more valuable in terms of the other, it is said to appreciate. If one currency becomes less valuable in terms of the other, it is said to depreciate.

The demand for a currency in a foreign exchange market arises from the demand for the country’s goods, services, and financial assets and shows the inverse relationship between the exchange rate and the quantity demanded of a currency.

The supply of a currency in a foreign exchange market arises from making payments in other currencies and shows the positive relationship between the exchange rate and the quantity supplied of a currency.

In the foreign exchange market, equilibrium is achieved when the exchange rate is such that the quantities demanded and supplied of the currency are equal.

Disequilibrium exchange rates create surpluses and shortages in the foreign exchange market. Market forces drive exchange rates toward equilibrium.
]]> 2019-07-26 13:56:20 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/372387825 Enduring Understanding jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/372387870 The interaction of buyers and sellers exchanging the currency of one country for the currency of another determines the equilibrium exchange rate in a flexible exchange market and influences the flow of goods, services, and financial capital between countries.]]> 2019-07-26 13:57:05 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/372387870 Learning Objectives jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/372387894 Define the exchange rate, currency appreciation, and currency depreciation.

Explain how currencies are valued relative to one another.

Calculate the value of one currency relative to another.

Define the foreign exchange market, demand for currency, and supply of currency.

Explain (using graphs as appropriate) the relationship between the exchange rate and the quantity of currency demanded (supplied).

Define (using graphs as appropriate) the equilibrium exchange rate.

Explain (using graphs as appropriate) how exchange rates adjust to restore equilibrium in the foreign exchange market.
]]> 2019-07-26 13:57:25 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/372387894 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/381475565 2019-09-09 08:05:34 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/381475565 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/479883964 2020-03-28 19:03:05 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/479883964 jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/479976021 2020-03-28 21:44:50 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/479976021 Real Exchange Rates from MRU jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/497305169 Includes quizzes.]]> 2020-04-07 17:28:24 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/497305169 Lesson Introduction jclerch https://padlet.com/jclerch/h11cmquyhivg/wish/1305832349 2021-03-13 19:14:23 UTC https://padlet.com/jclerch/h11cmquyhivg/wish/1305832349