Search results
Results from the WOW.Com Content Network
The Cambridge equation focuses on money demand instead of money supply. The theories also differ in explaining the movement of money: In the classical version, associated with Irving Fisher , money moves at a fixed rate and serves only as a medium of exchange while in the Cambridge approach money acts as a store of value and its movement ...
International finance studies the flow of capital across international financial markets, and the effects of these movements on exchange rates. [ 3 ] International monetary economics and international macroeconomics study flows of money across countries and the resulting effects on their economies as a whole.
A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.
Without a central exchange, currency exchange rates are made, or set, by market makers. [1] Banks constantly quote a bid and an ask price based on anticipated currency movements taking place [ clarification needed ] and thereby make the market.
Country foreign exchange reserves minus external debt. In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world.
The "fair trade" movement, also known as the "trade justice" movement, promotes the use of labour, environmental and social standards for the production of goods, particularly those exported from the Third and Second Worlds to the First World. Such ideas have also sparked a debate on whether trade itself should be codified as a human right. [89]
Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions ( as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. [1]
Foreign exchange option – the right to sell money in one currency and buy money in another currency at a fixed date and rate. Strike price – the asset price at which the investor can exercise an option. Spot price – the price of the asset at the time of the trade. Forward price – the price of the asset for delivery at a future time.