what does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker

Q: What is meant by the balance of payment? Why would it be useful to examine a country’s balance of…

A: please find the answer below.

Q: “According to the logic of the J-curve analysis, a country that revalues its currency should have an…

A: The J-curve describes the way that a country’s balance of trade initially worsens following a…

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: What could be the measures to correct disequilibrium in the balance of payments?

A: Depreciation is a term that refers to a rise in the price of a foreign currency or a decrease in the…

Q: Explain why the Cedi continues to depreciate against most major international currencies.

A: Currency depreciation is the decrease in the value of a country's currency in relation to one or…

Q: Is monetary approach an automatic adjustment mechanism to correct a deficit in the balance of…

A: The exchange rate is the rate at which the currencies of two countries can be traded for each other.…

Q: If the value of the US dollar appreciates, then US exports will tend to __ and US imports will tend…

A: Appreciation of the currency means that the value of currency has increased as compared to other…

Q: ive recommendation on how to manage exchange rates

A: Fixed exchange rate policy A fixed exchange rate provides stability to a currency. Examples of…

Q: Please explain flexible and fixed exchange rates. Show ways to maintain a strong or a weak currency

A: Flexible exchange rate A flexible exchange rate, also known as a floating exchange rate, fluctuates…

Q: What happens to the balance of trade if the nominal exchange rate depreciates?

A: According to the Marshall-Lerner condition if the exchange rate of a country depreciates it means…

Q: Nation’s exchange rate value for its currency in foreign exchange markets.  A nation's balance of…

A: The exchange rate is the rate at which the currency of a nation is traded for the currency of…

Q: What will happen if exchange rate fluctuate? (please do not copy answers on the internet, thank you)

A: Exchange rate: The value of one country's currency in relation to the currency of another country or…

Q: Is the Eurozone an “optimal” currency area and why, critically evaluate if possible.

A: An “optimal” currency area is characterized as one in which a single currency would create the…

Q: What does an increase in international reserves mean

A: International reserves are the foreign currency reserves.Foreign reserves or the international…

Q: How can an unexpected fall in exchange rates injure the financial health of a nation’s banks?

A: Exchange rate determines the price of the currency of a domestic country when it is exchanged with…

Q: a nation's currency is said to appreciate when exchange rates change so that a unit of its currency…

A: Answer: True, Explanation: If the currency of a  nation appreciates then it buys more units of…

Q: What are the automatic adjustment mechanisms operate to correct a deficit in the balance of payments…

A: Fixed Exchange Rate refers to the regime imposed by the reserve bank or by the central government…

Q: Elaborate the concept of Balance of Payments. Discuss its different accounts briefly.

A: Balance of payment (BOP) refers to the financial statement of all the transaction of a country with…

Q: A country is always worse off when its currency isweak (falls in value).” Is this statement true,…

A: This statement is false. A weak currency has a negative effect on purchase of goods and services…

Q: Suppose purchasing power parity is true. What happens to the nominal exchange rate if the price of…

A: The exchange rate is the rate at which the currencies are exchanged for one another. The exchange…

Q: What is balance of visible items in the balance of payments account called?

A: The balance of payments account of any country contains a number of components like balance of…

Q: What determines the value of a currency

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: Assuming that the Euro-U.S. dollar exchange rate is .9.  If a German buys an American automobile for…

A: According to the question, it is given that : The Euro-U.S. dollar exchange rate is 0.9 A German…

Q: How do international investment activities affect exchange rates?

A: Exchange rate refers to the amount of domestic currency that requires to buy one unit fo foreign…

Q: What’s the required condition for a country’s  Current Account Balance to improve after the…

A: When there is a devaluation of the currency, then immediately the imports of the country becomes…

Q: What are two ways in which monetary policies and tight budgets allow a fixed exchange rate system to…

A: the AA-DD model to portray the impacts of financial, monetary, and exchange rate policy under an…

Q: Why is a current account surplus equivalent to foreign investment ？

A: The countries worldwide gets involved in the sale and purchase of the goods, services, inputs of…

Q: What is the effect of a devaluation of a domestic currency?     A) Domestic goods will…

A: A currency may devaluate or revaluate under the fixed exchange rate regime in order to stabilize the…