University:
California State University, Northridge
Course:
ECON 101 | Economics for Everyday Life
Academic year:

2023
Views:

13

Pages:

2
Author:

Mahmoud M.

Economics notes Currency Trading - Those Who Sell Canadian Dollars to Buy Foreign Goods Legal Currency - Most Expensive Exchanges, Much More Canadian Dollars, People Are Starting To Sell Them Canadian Dollars - Canadian Dollars Exchange Rate Due to Imports Imports (Supply) - An increase in Canadian Imports means an increase in quantity Canadian Dollars Down Supply - The price of Canadian imports in foreign goods price - The higher the currency Canadian Dollar Supply Curve - Canadian Dollar Supply Amount and Currency Relationship between Rates Market Equilibrium - If the exchange rate is too high, demand is greater than demand Equilibrium occurs CAD Changes in Demand - Demand for Canadian Dollars changes as follows: World Demand for Canadian Exports World Demand for Canadian Exports Global Exports - Inc. Increase demand for Canadian dollars and swipe right Canadian interest rates by foreign currency. Expected Future Exchange Rate - Expected Future Currency Increase Increases Income from Holding Canadian Dollars, CAD Demand Increases CAD Supply Changes - When Supply Changes: Canadian Import Demand - Canadian Rate 4 Rates 4 Foreign Import Demand - Increase in Supply Canada Increases Canadian interest rates to foreigners - Difference in Canadian interest rates reduces the supply of Canadian dollars Hope for futures exchange rate - Loss of future exchange rate expectations means that people can make less profit from holding money - Selling Canadian coins they choose Currency change - Demand for Canadian dollars shifts to the right, supply remains unchanged, then exchange rate increases - Supply of Canadian dollars moves to the left and demand remains. Meanwhile the exchange rate is rising