Exchange Rates
Courtesy/ free pik

Important Vocabulary

  • To ‘peg’ a currency against something means to – fix its value in relation to it
  • A clean floating exchange rate – is determined by supply and demand
  • Exchange controls were used to limit – the amount of a country’s money that residents were able to change into foreign currencies
  • Speculators buy or sell currencies to – make a profit by making capital gains or by investing at higher interest rates
  • ‘Market forces’ means – the determination of price by supply and demand (the quantity available and the quantity bought and sold)
  • Hedging means – trying to insure against unfavorable price movements by way of future contracts
  • Adjust: To make changes to something
  • Convert: To change something into something else
  • Abolish: To end something permanently
  • Suspend: To end something temporarily
  • Fluctuate: To go up or down (in quality, value, etc.)
  • Diverge: To move away from what is considered normal


Extracted From

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.

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Founder and Author at Superb Future. Babu is a student of Business specializing in Sales and Marketing Management. "Everyone is a marketer, whether you are a businessman or a homemaker."

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