Ch 6: Exchange Rates & Currency Changes

About This Chapter

Examine currency and exchange rates with this collection of international business lessons. These convenient learning tools can help you bring up your grades, study for exams, finish your homework or earn continuing education credit.

Exchange Rates & Currency Rates - Chapter Summary

These informative business lessons help you review exchange and currency rates in an international business context. The chapter contains short and engaging instruction on topics such as exchange rate conversion, purchasing power, appreciation and depreciation, exchange rate risk and more. After you complete each lesson, you can take a short self-assessment quiz to check your understanding of the material. Lesson transcripts are also available to print so you can further reinforce what you learn. This chapter will enable you to:

  • Determine and convert exchange rates across countries
  • Know how fiscal and monetary policies affect exchange rates
  • Define purchasing power and explain parity theory
  • Understand how currency changes affect importing and exporting
  • Evaluate the effect that exchange rate changes have on currency appreciation and depreciation
  • Outline exchange rate risk and forms of exposure
  • Explain the Big Mac index and purchasing power parity

7 Lessons in Chapter 6: Exchange Rates & Currency Changes
Test your knowledge with a 30-question chapter practice test
Exchange Rate: Determination and Conversion Across Countries

1. Exchange Rate: Determination and Conversion Across Countries

Understand what exchange rates are and the different types that can be used by governments and countries. See how they operate and how the conversion process works across countries.

How Fiscal and Monetary Policies Affect the Exchange Rate

2. How Fiscal and Monetary Policies Affect the Exchange Rate

Discover how fiscal and monetary policy can affect the exchange rate and ultimately the amount of money it costs you to buy goods and services. Find out the three paths that both fiscal and monetary policy can travel to impact the exchange rate.

How Currency Changes Affect Imports and Exports

3. How Currency Changes Affect Imports and Exports

Learn about how currency changes can affect imports and exports. Find out how this affects you. Discover what happens when a dollar is strong compared to other currencies and what happens when it is weak.

Currency Appreciation & Depreciation: Effects of Exchange Rate Changes

4. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes

Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.

Exchange Rate Risk & Forms of Exposure

5. Exchange Rate Risk & Forms of Exposure

International businesses face certain risks, including the risk of exchange rates being unfavorable. In this lesson, we'll explore forms of exchange rate exposure, including short-run, long-run, and translation exposure.

What is Purchasing Power? - Definition & Parity Theory

6. What is Purchasing Power? - Definition & Parity Theory

In this lesson, we'll be looking at purchasing power, which is used for computing the value of currency. After the lesson, you can test your knowledge with a short quiz.

Purchasing Power Parity & the Big Mac Index

7. Purchasing Power Parity & the Big Mac Index

In this lesson, we explore the Big Mac index, which analyzes whether currencies are at their correct levels using the theory of purchasing-power parity. We discuss the index and look at examples of how to read and use it.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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