UNIT 6 Review

3. Account – Part of the balance of payments that includes trade in goods and services, investment income, and net transfers.
8. – An increase in the value of a currency relative to others.
9. – Goods and services sold by one country to another.
10. – The availability of a currency, often due to imports or foreign investment.
11. Balance – The difference between a country's exports and imports of goods and services.
13. Policy – Government spending and taxation policies that can affect exchange rates and trade.
14. Deficit – When a country imports more goods and services than it exports.
16. – Money flowing into a country; considered a positive entry in the balance of payments.
18. – Money flowing out of a country; considered a negative entry in the balance of payments.
20. Policy – Central bank actions (like adjusting interest rates) that influence money supply and currency value.

1. – A decrease in the value of a currency relative to others.
2. Rates – The cost of borrowing money; higher rates tend to attract foreign investment and currency inflows.
4. – When credits exceed debits in an account, indicating more money is entering than leaving.
5. Flow – Movement of money for investment, trade, or business production between countries.
6. – When debits exceed credits in an account, meaning more money is leaving than entering.
7. – Short for “foreign exchange”; the market where currencies are traded.
12. Rate – The price of one currency in terms of another.
15. Exports – The value of a country’s total exports minus its total imports.
17. – The desire to purchase a currency, often to buy a country’s goods or assets.
19. Surplus – When a country exports more goods and services than it imports.