Ch 22: Foreign Exchange & Trade Balance

About This Chapter

Use video lessons to study foreign currency exchange and how fiscal and monetary policies impact the exchange rate. Learn about trade balance, balance of payments and international banking organizations.

Foreign Exchange & Trade Balance - Chapter Summary

The lessons in this chapter will show you about foreign currency exchange, including how the exchange rate is determined and the impact of changes in the exchange rates. You'll learn how fiscal and monetary policies influence the exchange rate. Our instructors will discuss achieving trade balance, balance of payments and international banking. After completing these lessons, you should be ready to:

  • Describe demand and supply as it relates to currency
  • Explain how the currency exchange rate is determined
  • Analyze the impact of changes in the exchange rates
  • Show how imports and exports are affected by currency changes
  • Define trade deficit and trade surplus
  • Explain balance of payments
  • Identify international banking organizations, including the World Bank, and tell what they do

Our expert instructors have developed entertaining lessons to help you learn, and each includes a quiz that allows you to test your knowledge. There is a written transcript of every lesson, some with links to text lessons that provide additional information. The lessons also include video tags that make it easy for you to go back and review passages that require additional study.

9 Lessons in Chapter 22: Foreign Exchange & Trade Balance
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.

The World Bank, IMF & Other International Banking Organizations

9. The World Bank, IMF & Other International Banking Organizations

International banking and financial organizations exist to encourage economic and financial stability, help facilitate trade, and help with economic development. In this lesson, you'll learn about some of these important organizations.

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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