Learning Module 7 of Economics 6–9% of the exam
Capital Flows and the FX Market
3 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 The Foreign Exchange Market and Exchange Rates
Coming soon
- 2 Exchange Rate Regimes: Ideals and Historical Perspective
Coming soon
- 3 Capital Restrictions
Coming soon
What the exam expects you to do
- Describe the foreign exchange market, including its functions and participants, distinguish between nominal and real exchange rates, and calculate and interpret the percentage change in a currency relative to another currency.
- Describe exchange rate regimes and explain the effects of exchange rates on countries’ international trade and capital flows.
- Describe common objectives of capital restrictions imposed by governments.