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Ch 65: Foreign Exchange & the Balance of Payments - MTEL Political Science/Political Philosophy

About This Chapter

Learn about foreign exchange and the balance of payments in this chapter of the MTEL Political Science/Political Philosophy exam study guide. Video lesson and self-assessment quizzes teach you all you need to know about foreign exchange.

Foreign Exchange & the Balance of Payments - Chapter Summary

Lessons in this chapter cover the foreign currency exchange, exchange rate, and currency appreciation and depreciation. Fiscal and monetary policies, currency changes, and trade balance are also covered. By the end of this chapter, you should be familiar with:

  • Currency supply and demand
  • Determination and conversion between countries
  • Effects of currency changes on imports and exports
  • Trade deficit and surplus
  • Measuring foreign trade
  • Balance of payments with financial accounts

Knowledgeable instructors walk you through each video lesson, and are available to answer any questions you may have. You can go directly to main topics within the video lessons by using the jump feature. Visit your Dashboard to track your progress through the course.

Foreign Exchange & the Balance of Payments - Chapter Objectives

The MTEL Political Science/Political Philosophy exam measures a student's knowledge of subject matter in accordance with Massachusetts educator licensure regulations. The exam measures political philosophy, US government and civics, comparative government and international relations, history, and geography and economics. The material covered in this Foreign Exchange and the Balance of Payments chapter is tested in the geography and economics portion of the MTEL exam, which comprises about 10% of the entire test. The exam includes 100 multiple-choice questions and two open response questions.

8 Lessons in Chapter 65: Foreign Exchange & the Balance of Payments - MTEL Political Science/Political Philosophy
Test your knowledge with a 30-question chapter practice test
Foreign Currency Exchange: Supply and Demand for Currency

1. Foreign Currency Exchange: Supply and Demand for Currency

In this lesson, you'll learn why money from different countries has different values of exchange. We'll cover the supply and demand for currencies and how changes in supply and demand can affect the exchange rates between currencies.

Exchange Rate: Determination and Conversion Across Countries

2. 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.

Currency Appreciation & Depreciation: Effects of Exchange Rate Changes

3. 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.

How Fiscal and Monetary Policies Affect the Exchange Rate

4. 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

5. 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.

Achieving Trade Balance: Trade Deficit and Surplus Examples

6. Achieving Trade Balance: Trade Deficit and Surplus Examples

Find out what trade balance, trade deficit, and trade surplus are. Learn about some recent examples that help clarify trade deficit and surplus. Explore what countries have a surplus and what countries have a deficit.

Balance of Payments: Current Account & Measuring Foreign Trade

7. Balance of Payments: Current Account & Measuring Foreign Trade

Find out what the current account is and the four main foreign trade components that it is comprised of. Similar to your bank account, learn how the current account is measured and what a deficit and surplus mean when talking about this economic indicator.

Balance of Payments with Financial Accounts: Measuring Foreign Trade

8. Balance of Payments with Financial Accounts: Measuring Foreign Trade

Learn about the balance of payments and the two key components that make it up. Discover what the financial/capital account is and how it relates to foreign trade and surpluses and deficits.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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