SlideShare a Scribd company logo
EPF9 The student will demonstrate knowledge of the
                                   global economy
Exchange Rates
 When exchange rates fluctuate, the prices of exports
 and imports change, and some groups gain while
 others lose in each country.
Exchange Rate
 An exchange rate is the price of one nation’s
 currency relative to another nation’s currency.
 Like prices, exchange rates are determined by supply
 and demand.
Strong vs. Weak Dollar
 When the dollar grows stronger against another
  currency, it means people holding dollars get more
  of the other currency for each of their dollars (e.g., a
  stronger dollar would get more euros per dollar).
 When the dollar is weaker against another currency, it
  means people holding dollars get less of the other
  currency for each of their dollars (e.g., a weaker dollar
  would get less euros per dollar).
Who benefits and who is hurt by
strong and weak dollars?
 A strong dollar helps Americans traveling abroad or
 buying imports because it makes foreign hotels and
 goods less expensive. A strong dollar hurts Americans
 selling exports to shoppers in other countries, because
 it makes the United States goods more expensive.

 A weak dollar hurts Americans who travel abroad or
 buy imports because it makes foreign hotels and goods
 more expensive. A weak dollar helps Americans
 producing and selling exports to shoppers in other
 countries, because the United States goods are then
 cheaper to foreigners.

More Related Content

Viewers also liked

Epf3c elasticity of supply and demand
Epf3c elasticity of supply and demandEpf3c elasticity of supply and demand
Epf3c elasticity of supply and demand
maynardteacher
 
Epf2h effects of competition
Epf2h effects of competitionEpf2h effects of competition
Epf2h effects of competition
maynardteacher
 
Epf2f productivity and standard of living
Epf2f productivity and standard of livingEpf2f productivity and standard of living
Epf2f productivity and standard of living
maynardteacher
 
Marketing plan
Marketing planMarketing plan
Marketing plan
maynardteacher
 
Epf1f adam smith and market economy
Epf1f adam smith and market economyEpf1f adam smith and market economy
Epf1f adam smith and market economy
maynardteacher
 
Epf2j circular flow of economic activity
Epf2j circular flow of economic activityEpf2j circular flow of economic activity
Epf2j circular flow of economic activity
maynardteacher
 
Place
PlacePlace
Epf3d price ceilings and floors
Epf3d price ceilings and floorsEpf3d price ceilings and floors
Epf3d price ceilings and floors
maynardteacher
 
10 consumer skills
10 consumer skills10 consumer skills
10 consumer skills
maynardteacher
 
9c trade deficit surplus
9c trade deficit surplus9c trade deficit surplus
9c trade deficit surplus
maynardteacher
 
Consumer rights and responsibilities
Consumer rights and responsibilitiesConsumer rights and responsibilities
Consumer rights and responsibilities
maynardteacher
 

Viewers also liked (11)

Epf3c elasticity of supply and demand
Epf3c elasticity of supply and demandEpf3c elasticity of supply and demand
Epf3c elasticity of supply and demand
 
Epf2h effects of competition
Epf2h effects of competitionEpf2h effects of competition
Epf2h effects of competition
 
Epf2f productivity and standard of living
Epf2f productivity and standard of livingEpf2f productivity and standard of living
Epf2f productivity and standard of living
 
Marketing plan
Marketing planMarketing plan
Marketing plan
 
Epf1f adam smith and market economy
Epf1f adam smith and market economyEpf1f adam smith and market economy
Epf1f adam smith and market economy
 
Epf2j circular flow of economic activity
Epf2j circular flow of economic activityEpf2j circular flow of economic activity
Epf2j circular flow of economic activity
 
Place
PlacePlace
Place
 
Epf3d price ceilings and floors
Epf3d price ceilings and floorsEpf3d price ceilings and floors
Epf3d price ceilings and floors
 
10 consumer skills
10 consumer skills10 consumer skills
10 consumer skills
 
9c trade deficit surplus
9c trade deficit surplus9c trade deficit surplus
9c trade deficit surplus
 
Consumer rights and responsibilities
Consumer rights and responsibilitiesConsumer rights and responsibilities
Consumer rights and responsibilities
 

Similar to 9d exchange rates

Ap Macro Forex
Ap Macro ForexAp Macro Forex
Ap Macro Forex
haywardecon
 
Impact of changing exchange rates on exports and imports.pdf
Impact of changing exchange rates on exports and imports.pdfImpact of changing exchange rates on exports and imports.pdf
Impact of changing exchange rates on exports and imports.pdf
Govind Kumar
 
Chapter 18 International Finance
Chapter 18 International FinanceChapter 18 International Finance
Chapter 18 International Finance
Alamgir Alwani
 
Currency appreciation and depreciation- Yashavanth G Nayak
Currency appreciation and depreciation- Yashavanth G NayakCurrency appreciation and depreciation- Yashavanth G Nayak
Currency appreciation and depreciation- Yashavanth G Nayak
Yashavanth Nayak
 
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange MarketEcon315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Market
sakanor
 
Foreign Exchange Market Primary1111
Foreign Exchange Market Primary1111Foreign Exchange Market Primary1111
Foreign Exchange Market Primary1111
haywardecon
 
Exchange rate final
Exchange rate finalExchange rate final
Exchange rate final
Mohamed Awad
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
Bikramjit Singh
 
foriegn exchange, exchange rate quotation
foriegn exchange, exchange rate quotationforiegn exchange, exchange rate quotation
foriegn exchange, exchange rate quotation
aseel m
 
Module 42 the foreign exchange market
Module 42 the foreign exchange marketModule 42 the foreign exchange market
Module 42 the foreign exchange market
American School of Guatemala
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
wasim yousuf
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
Gene Hayward
 
Foreign Exchange Market
Foreign Exchange MarketForeign Exchange Market
Foreign Exchange Market
Gene Hayward
 
CHAPTER ONE 1. THE FOREIGN EXCHANGE MARKET
CHAPTER ONE 1. THE FOREIGN EXCHANGE MARKETCHAPTER ONE 1. THE FOREIGN EXCHANGE MARKET
CHAPTER ONE 1. THE FOREIGN EXCHANGE MARKET
yirgalemleaye
 
Impact of currency fluctuation on fii ,dii and sensex
Impact of currency fluctuation on fii ,dii and sensexImpact of currency fluctuation on fii ,dii and sensex
Impact of currency fluctuation on fii ,dii and sensex
Mohit Jariwala
 
FOREX - CURRENCIES COME IN PAIRS (1.2)
FOREX - CURRENCIES COME IN PAIRS (1.2)FOREX - CURRENCIES COME IN PAIRS (1.2)
FOREX - CURRENCIES COME IN PAIRS (1.2)
Trading Floor
 
Hantec why trade forex v10 -
Hantec why trade forex v10 - Hantec why trade forex v10 -
Hantec why trade forex v10 -
Incognate Limited
 
International Finance
International FinanceInternational Finance
International Finance
mandalina landy
 
Forex Management Chapter - III
Forex Management Chapter - IIIForex Management Chapter - III
Forex Management Chapter - III
Swaminath Sam
 
3-the-foreign-exchange-market.pptx
3-the-foreign-exchange-market.pptx3-the-foreign-exchange-market.pptx
3-the-foreign-exchange-market.pptx
LoneWolf616758
 

Similar to 9d exchange rates (20)

Ap Macro Forex
Ap Macro ForexAp Macro Forex
Ap Macro Forex
 
Impact of changing exchange rates on exports and imports.pdf
Impact of changing exchange rates on exports and imports.pdfImpact of changing exchange rates on exports and imports.pdf
Impact of changing exchange rates on exports and imports.pdf
 
Chapter 18 International Finance
Chapter 18 International FinanceChapter 18 International Finance
Chapter 18 International Finance
 
Currency appreciation and depreciation- Yashavanth G Nayak
Currency appreciation and depreciation- Yashavanth G NayakCurrency appreciation and depreciation- Yashavanth G Nayak
Currency appreciation and depreciation- Yashavanth G Nayak
 
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange MarketEcon315 Money and Banking: Learning Unit 15: Foreign Exchange Market
Econ315 Money and Banking: Learning Unit 15: Foreign Exchange Market
 
Foreign Exchange Market Primary1111
Foreign Exchange Market Primary1111Foreign Exchange Market Primary1111
Foreign Exchange Market Primary1111
 
Exchange rate final
Exchange rate finalExchange rate final
Exchange rate final
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
 
foriegn exchange, exchange rate quotation
foriegn exchange, exchange rate quotationforiegn exchange, exchange rate quotation
foriegn exchange, exchange rate quotation
 
Module 42 the foreign exchange market
Module 42 the foreign exchange marketModule 42 the foreign exchange market
Module 42 the foreign exchange market
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
 
Foreign Exchange Market
Foreign Exchange MarketForeign Exchange Market
Foreign Exchange Market
 
CHAPTER ONE 1. THE FOREIGN EXCHANGE MARKET
CHAPTER ONE 1. THE FOREIGN EXCHANGE MARKETCHAPTER ONE 1. THE FOREIGN EXCHANGE MARKET
CHAPTER ONE 1. THE FOREIGN EXCHANGE MARKET
 
Impact of currency fluctuation on fii ,dii and sensex
Impact of currency fluctuation on fii ,dii and sensexImpact of currency fluctuation on fii ,dii and sensex
Impact of currency fluctuation on fii ,dii and sensex
 
FOREX - CURRENCIES COME IN PAIRS (1.2)
FOREX - CURRENCIES COME IN PAIRS (1.2)FOREX - CURRENCIES COME IN PAIRS (1.2)
FOREX - CURRENCIES COME IN PAIRS (1.2)
 
Hantec why trade forex v10 -
Hantec why trade forex v10 - Hantec why trade forex v10 -
Hantec why trade forex v10 -
 
International Finance
International FinanceInternational Finance
International Finance
 
Forex Management Chapter - III
Forex Management Chapter - IIIForex Management Chapter - III
Forex Management Chapter - III
 
3-the-foreign-exchange-market.pptx
3-the-foreign-exchange-market.pptx3-the-foreign-exchange-market.pptx
3-the-foreign-exchange-market.pptx
 

More from maynardteacher

Leisure time graphic organizer
Leisure time graphic organizerLeisure time graphic organizer
Leisure time graphic organizer
maynardteacher
 
34 importance and impact presentation
34 importance and impact presentation34 importance and impact presentation
34 importance and impact presentation
maynardteacher
 
Sports promotion terms
Sports promotion termsSports promotion terms
Sports promotion terms
maynardteacher
 
Retirement
RetirementRetirement
Retirement
maynardteacher
 
18 investment and savings planning
18 investment and savings planning18 investment and savings planning
18 investment and savings planning
maynardteacher
 
Debt management
Debt managementDebt management
Debt management
maynardteacher
 
Consumer credit
Consumer creditConsumer credit
Consumer credit
maynardteacher
 
13 credit & loan functions
13 credit & loan functions13 credit & loan functions
13 credit & loan functions
maynardteacher
 
Personal banking
Personal bankingPersonal banking
Personal banking
maynardteacher
 
12 banking transactions
12 banking transactions12 banking transactions
12 banking transactions
maynardteacher
 
16 taxes
16 taxes16 taxes
16 taxes
maynardteacher
 
Comparison shopping
Comparison shoppingComparison shopping
Comparison shopping
maynardteacher
 
11 planning for living
11 planning for living11 planning for living
11 planning for living
maynardteacher
 
14 role of insurance
14 role of insurance14 role of insurance
14 role of insurance
maynardteacher
 
Communication skills
Communication skillsCommunication skills
Communication skills
maynardteacher
 
Business ownership
Business ownershipBusiness ownership
Business ownership
maynardteacher
 
Sales promotion & publicity
Sales promotion & publicitySales promotion & publicity
Sales promotion & publicity
maynardteacher
 
Describe website requirements & options
Describe website requirements & optionsDescribe website requirements & options
Describe website requirements & options
maynardteacher
 
Social networking
Social networkingSocial networking
Social networking
maynardteacher
 
Effective web design strategies
Effective web design strategiesEffective web design strategies
Effective web design strategies
maynardteacher
 

More from maynardteacher (20)

Leisure time graphic organizer
Leisure time graphic organizerLeisure time graphic organizer
Leisure time graphic organizer
 
34 importance and impact presentation
34 importance and impact presentation34 importance and impact presentation
34 importance and impact presentation
 
Sports promotion terms
Sports promotion termsSports promotion terms
Sports promotion terms
 
Retirement
RetirementRetirement
Retirement
 
18 investment and savings planning
18 investment and savings planning18 investment and savings planning
18 investment and savings planning
 
Debt management
Debt managementDebt management
Debt management
 
Consumer credit
Consumer creditConsumer credit
Consumer credit
 
13 credit & loan functions
13 credit & loan functions13 credit & loan functions
13 credit & loan functions
 
Personal banking
Personal bankingPersonal banking
Personal banking
 
12 banking transactions
12 banking transactions12 banking transactions
12 banking transactions
 
16 taxes
16 taxes16 taxes
16 taxes
 
Comparison shopping
Comparison shoppingComparison shopping
Comparison shopping
 
11 planning for living
11 planning for living11 planning for living
11 planning for living
 
14 role of insurance
14 role of insurance14 role of insurance
14 role of insurance
 
Communication skills
Communication skillsCommunication skills
Communication skills
 
Business ownership
Business ownershipBusiness ownership
Business ownership
 
Sales promotion & publicity
Sales promotion & publicitySales promotion & publicity
Sales promotion & publicity
 
Describe website requirements & options
Describe website requirements & optionsDescribe website requirements & options
Describe website requirements & options
 
Social networking
Social networkingSocial networking
Social networking
 
Effective web design strategies
Effective web design strategiesEffective web design strategies
Effective web design strategies
 

Recently uploaded

University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
tscdzuip
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
msthrill
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
Majid Iqbal
 
The various stages, after the initial invitation has been made to the public ...
The various stages, after the initial invitation has been made to the public ...The various stages, after the initial invitation has been made to the public ...
The various stages, after the initial invitation has been made to the public ...
Yashwanth Rm
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
brunasordi905
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
Initial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.pptInitial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.ppt
ribhi87
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
FinTech Belgium
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
28xo7hf
 
PM pre reads for the product manager framework
PM pre reads for the product manager frameworkPM pre reads for the product manager framework
PM pre reads for the product manager framework
KishoreKatta6
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
ResolutionFoundation
 
Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)Economic trends from a business point of view (May 2024)
How to Use Payment Vouchers in Odoo 18.
How to Use Payment Vouchers in  Odoo 18.How to Use Payment Vouchers in  Odoo 18.
How to Use Payment Vouchers in Odoo 18.
FinShe
 
Understanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptxUnderstanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptx
cosmo-soil
 
The Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptxThe Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptx
Diana Rose
 
Accounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptxAccounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptx
TIZITAWMASRESHA
 
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
Riadh ASSOUAK
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
asukqco
 
10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies
RhemanRaphael
 

Recently uploaded (20)

University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
 
The various stages, after the initial invitation has been made to the public ...
The various stages, after the initial invitation has been made to the public ...The various stages, after the initial invitation has been made to the public ...
The various stages, after the initial invitation has been made to the public ...
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
Initial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.pptInitial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.ppt
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
 
PM pre reads for the product manager framework
PM pre reads for the product manager frameworkPM pre reads for the product manager framework
PM pre reads for the product manager framework
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
 
Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)
 
How to Use Payment Vouchers in Odoo 18.
How to Use Payment Vouchers in  Odoo 18.How to Use Payment Vouchers in  Odoo 18.
How to Use Payment Vouchers in Odoo 18.
 
Understanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptxUnderstanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptx
 
The Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptxThe Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptx
 
Accounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptxAccounting Information Systems (AIS).pptx
Accounting Information Systems (AIS).pptx
 
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
3-الملخصات الهيكلية للمعايير المراجعة المصرية.pdf
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
 
10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies
 

9d exchange rates

  • 1. EPF9 The student will demonstrate knowledge of the global economy
  • 2. Exchange Rates  When exchange rates fluctuate, the prices of exports and imports change, and some groups gain while others lose in each country.
  • 3.
  • 4. Exchange Rate  An exchange rate is the price of one nation’s currency relative to another nation’s currency. Like prices, exchange rates are determined by supply and demand.
  • 5.
  • 6. Strong vs. Weak Dollar  When the dollar grows stronger against another currency, it means people holding dollars get more of the other currency for each of their dollars (e.g., a stronger dollar would get more euros per dollar).  When the dollar is weaker against another currency, it means people holding dollars get less of the other currency for each of their dollars (e.g., a weaker dollar would get less euros per dollar).
  • 7.
  • 8. Who benefits and who is hurt by strong and weak dollars?  A strong dollar helps Americans traveling abroad or buying imports because it makes foreign hotels and goods less expensive. A strong dollar hurts Americans selling exports to shoppers in other countries, because it makes the United States goods more expensive.  A weak dollar hurts Americans who travel abroad or buy imports because it makes foreign hotels and goods more expensive. A weak dollar helps Americans producing and selling exports to shoppers in other countries, because the United States goods are then cheaper to foreigners.