Unit 7 Notes - Foreign Exchange

·     What is the definition of Foreign Exchange?

•      The Buying and Selling of Currency

·      

    What is the difference between Appreciation and Depreciation?

•       Appreciation = The increase of value of a country’s currency with respect to a foreign country’s currency
•        A dollar is said to be stronger and there are less units of dollars that are needed to buy a single unit of the other currency

-       Depreciation = The loss of value of a country’s currency with respect to a foreign currency

•       The dollar is considered to be weak
•       More units of the dollar is needed to buy a single unit of the other currency