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.
