Question

drag the tiles to the correct boxes to complete the pairs.
match each term to its description.

pairs

• an exchange rate system in which the central bank fixes the value of its currency to another currency
• what happens to a currency if demand for a countrys goods increases
• a hybrid exchange rate system in which the currency value floats within a limited range of values
• decrease in the value of a currency in relation to another currency
• an exchange rate system in which the value is set by supply and demand for the currency in the free market

tiles

• depreciation
• floating exchange rate
• appreciation
• fixed exchange rate
• managed exchange rate

Explanation:

Match fixed exchange rate

Using the Exchange Rates knowledge point

• Description: "an exchange rate system in which the central bank fixes the value of its currency to another currency"
• Term: fixed exchange rate

Match currency appreciation

Using the Exchange Rates knowledge point

• Description: "what happens to a currency if demand for a country's goods increases"
• Term: appreciation

Match managed exchange rate

Using the Exchange Rates knowledge point

• Description: "a hybrid exchange rate system in which the currency value floats within a limited range of values"
• Term: managed exchange rate

Match currency depreciation

Using the Exchange Rates knowledge point

• Description: "decrease in the value of a currency in relation to another currency"
• Term: depreciation

Match floating exchange rate

Using the Exchange Rates knowledge point

• Description: "an exchange rate system in which the value is set by supply and demand for the currency in the free market"
• Term: floating exchange rate

Answer:

Description	Term
what happens to a currency if demand for a country's goods increases	appreciation
a hybrid exchange rate system in which the currency value floats within a limited range of values	managed exchange rate
decrease in the value of a currency in relation to another currency	depreciation
an exchange rate system in which the value is set by supply and demand for the currency in the free market	floating exchange rate