Flashcards
LvL 2 Economics Exam Prep 91224 - Exchange Rates
Cards in this deck (7)
- 1Definition of Exchange Rate (NZ$)The Exchange Rate measures the value of the New Zealand Dollar (NZ$) in other currencies.
- 2To convert overseas currency to (NZ$)...Divide by the exchange rate
- 3To convert a NZ price to another currency,Multiply by the exchange rate
- 4If the exchange rate appreciates, will NZ importers and travellers be better off?Better off, lowers the amount of (NZ$) to buy the same amount of foreign currency, imports will be cheaper.
- 5If the exchange rate depreciates, will importers and NZ travellers be better off?Not better off, increases the amount of (NZ$) to buy the same amount of foreign currency, imports will be more expensive.
- 6If the exchange rate appreciates, will NZ exporters and overseas travellers be better off?Not better off, to overseas buyers, costs more foreign currency to buy the same amount of (NZ$) , exports for foreign buyers will be more expensive.
- 7If the exchange rate depreciates, will exporters and overseas travellers be better off?Better off, costs fewer units of foreign currency to buy the same amount of (NZ$), exports will be cheaper for overseas buyers.
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- Description
- Key concepts around Exchange rates in relation to Level 2 economics external, 21224, Analyse Economic Growth Using Economic Concepts and Models
- Created by
- Dani Young
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