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Ch 85: MTTC History: Foreign Exchange & the Balance of Payments

About This Chapter

Let our instructors help you prepare for questions about foreign exchange and balance of payments on the MTTC History exam. Review exchange rate, trade balance and more.

MTTC History: Foreign Exchange and the Balance of Payments - Chapter Summary

Learn new info or review foreign exchange and balance of payments concepts quickly with these fun and fast videos. Your preparation for the MTTC History exam is easy with the short video lessons in this chapter that help refresh your memory on such concepts as:

  • Supply and demand for currency
  • Use of exchange rates across countries
  • Effects of changes in the exchange rate
  • Fiscal and monetary policies' influence on the exchange rate
  • How imports and exports are affected by currency changes
  • Methods for measuring foreign trade and trade deficits
  • Trade deficits and financial accounts

You'll be ready for the exam in no time if you use our lessons to prepare. A transcript is available with each video, making it easy to find key terms or review something you missed the first time around. You can re-watch videos as often as you want or use the video tags to find and review main points of a video as you prepare for the exam.

Objectives of the MTTC History: Foreign Exchange and the Balance of Payments Chapter

The goal of the MTTC History exam is to gauge your comprehension of critical history topics in order to become a licensed history teacher in Michigan. This exam is made up entirely of multiple-choice questions covering several areas of history, politics and economics. About 24% of the exam questions are found in the interdisciplinary perspectives section, which is where you'll be asked about foreign exchange and the balance of payments.

You might be asked to read a passage and respond to a question about it or to select an answer from a series of responses about a specific statement or question. Our self-assessment quizzes can help you get comfortable with the format of the exam's questions while preparing you for the content you'll be tested on.

8 Lessons in Chapter 85: MTTC History: Foreign Exchange & the Balance of Payments
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.

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Other Chapters

Other chapters within the MTTC History: Practice & Study Guide course

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