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      MTU Cork Subject Guides

Macroeconomics: Exchange Rates & B.O.P

Exchange Rates & Balance of Payments Matching Exercise

Exchange Rates & Balance of Payments

Topic 4: Exchange Rates & Balance of Payments - Matching Exercise

Match the items on the right to the items on the left

If the Euro depreciates in value relative to the US Dollar
If the Euro appreciates in value relative to the US Dollar
A factor that causes a shift along the demand and supply curves for an exchange rate.
Fixed exchange rate
Devaluation
The exchange rate is allowed to find its equilibrium in line with demand and supply but the Central Bank intervenes from time to time if the currency is very weak or very strong
Invisible Trade
A component of the financial account
EU structural funding for capital projects