Term
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Definition
| The price of one country's money in terms of another. |
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Term
| types of foreign exchange rate systems |
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Definition
Fixed exchange
Flexible Exchange |
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Term
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Definition
| central banks buy and sell their own money to keep their exchange rates fixed at a certain level |
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Term
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Definition
| exchange rates fluctuate according to the forces of demand and supply in the marketplace. |
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Term
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Definition
Demand for dollars is from people and businesses who
want to spend in the U.S., either to buy goods or assets. |
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Term
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Definition
Supply of dollars is from people and businesses in the
U.S. who want to buy goods or assets in other countries. |
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Term
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Definition
| when your money rises, its price in terms of other country's money rises |
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Term
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Definition
| when your money decreases, its price in terms of other country's money goes down |
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Term
| reasons for changes in supply and demand of FX |
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Definition
| Interest rates, Price Levels, expectations, gov. policy |
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Term
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Definition
| A record of economic transactions between the home country and the rest of the world during a given period |
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Term
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Definition
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Term
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Definition
| US assets(-) vs. Foreign assets in the US(+) |
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Term
| Majority and Supper Majority |
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Definition
| decisive with 2 choices, 51% for majority nad 66% super majority |
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Term
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Definition
| easiest voting method, most votes wins |
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Term
| Plurality voting with a run off. |
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Definition
| 2 round election, top two vote getters in first round compete in second round |
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Term
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Definition
Majority rule between 2 alternatives. Run winner against the other. This type of social choice mechanism can result in
what is called cycling, or the voting paradox. |
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Term
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Definition
| votes for as many canaditates as they want. Candidate with most votes wins |
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Term
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Definition
| First place receives most votes and so on. Used for ranking teams in college sports. |
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Term
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Definition
A theory of decision making by the
participants in an interdependent context |
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Term
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Definition
An action rule that
maximizes the decision maker’s welfare
independent of the actions of other player, i.e., no matter what the other player does |
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Term
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Definition
| The result of a game when both players follow a dominant strategy. |
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