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  • Exchange Rate: Business Studies Gap Fillers

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    When firms import goods and services, they must use foreign currency to pay the country they bought from. The price of a foreign currency is its exchange rate, which is its value relative to other currencies. Most currencies float on foreign exchange markets, where their value rises and falls based on supply and demand. Governments can intervene by fixing exchange rates or lowering them through devaluation, and control their currency's price through managed flexibility in buying and selling it.

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    Its a quiz on exchange rate

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    exchange_rate.pdf

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    When firms import goods and services, they must use foreign currency to pay the country they bought from. The price of a foreign currency is its exchange rate, which is its value relative to other currencies. Most currencies float on foreign exchange markets, where their value rises and falls based on supply and demand. Governments can intervene by fixing exchange rates or lowering them through devaluation, and control their currency's price through managed flexibility in buying and selling it.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    38 views2 pages

    Exchange Rate: Business Studies Gap Fillers

    Uploaded by

    dipti30
    When firms import goods and services, they must use foreign currency to pay the country they bought from. The price of a foreign currency is its exchange rate, which is its value relative to other currencies. Most currencies float on foreign exchange markets, where their value rises and falls based on supply and demand. Governments can intervene by fixing exchange rates or lowering them through devaluation, and control their currency's price through managed flexibility in buying and selling it.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    BusinessStudiesGapfillers

    ExchangeRate
    When firms import goods and services they must also use
    (1)___________________ to pay the country they bought them from. The
    price of a foreign currency is known as its foreign (2)___________________.
    That is, its value in terms of othercountries (3)___________________. Most
    currencies are allowed to (4)___________________ on the foreign exchange
    market according to the demand and (5)___________________ of each
    currency. When the value of a currency falls it is known as a
    (6)___________________ofitsvalue.Ariseinthepriceofacurrencyisknown
    as an (7)___________________. Some governments have intervened in the
    foreign exchange market to fix their own value for their currency. This is
    known as (8)___________________ exchange rate. Sometimes due to
    changing international markets the governments have to lower the exchange
    ratewhichisknownas(9)___________________.Governmentsallcontrolthe
    price of its currency byselling orbuying of their currencywhich is termed as
    (10)___________________.

    appreciationcurrenciesdepreciationdevaluationexchangeratefixed
    floatforeigncurrencymanaged flexibilitysupply

    This gapfillerexercise hasbeendownloadedfrom www.dineshbakshi.com


    Revisionnotes,crosswords,quizzes,flashgamesforIGCSEBusinessStudies,
    EconomicsandAccounting.

    BusinessStudiesGapfillers

    Key
    ExchangeRate

    Whenfirmsimportgoodsandservicestheymustalsouseforeigncurrencyto
    pay the country they bought them from. The price of a foreign currency is
    known as its foreign exchange rate. That is, its value in terms of other
    countries currencies. Most currencies are allowed to float on the foreign
    exchangemarketaccordingtothedemandandsupplyofeachcurrency.When
    thevalueofacurrencyfallsitisknownasadepreciationofitsvalue.Arisein
    thepriceofacurrencyisknownasanappreciation.Somegovernments have
    intervened in the foreign exchange market to fix their own value for their
    currency. This is known as fixed exchange rate. Sometimes due to changing
    internationalmarketsthegovernmentshavetolowertheexchangeratewhich
    is known as devaluation. Governments all control the price of its currencyby
    sellingorbuyingoftheircurrencywhichistermedasmanagedflexibility.

    This gapfillerexercise hasbeendownloadedfrom www.dineshbakshi.com


    Revisionnotes,crosswords,quizzes,flashgamesforIGCSEBusinessStudies,
    EconomicsandAccounting.

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