International Trade and Money summary Questions and Answers 2023

Balance of Payments Accounts - -summary of the country's transactions with other countries -Current Account - -balance of payments on goods and services plus net international transfer payments and factor income -Balance of Payments on Goods and Services - -the difference between exports and imports in a given period -Trade Balance - -the difference between country's exports and imports of goods -Financial Account - -the difference between its sales of assets to foreigners and its purchases of assets from foreigners during a given period -Foreign Exchange Market - -currencies are traded -Exchange Rates - -prices at which currencies trade -Appreciates - -when a currency becomes more valuable in terms of other currencies -Depreciates - -when a currency becomes less valuable in terms of other currencies -Equilibrium Exchange Rate - -the exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied -Real Exchange Rates - -exchange rates adjusted for international differences in aggregate price levels