What is the principal difference between international payment operations and domestic

payments?

2. In what way are the currencies of different countries exchanged in export-import transactions?

What is the real significance of such notions as ‘"quotation” and “spread”?

3. In what way can any nation’s exports finance or “pay for” its imports?

4. What immediate foreign exchange transactions are effected in the foreign exchange market?

5. What can you say about a concept of arbitrage? What is it based on?

Written Practice

Summarize the unit in a paragraph of about 300—350 words.

* Арбитраж — арбитражные операции (одновременная покупка и продажа ценных бумаг с целью

Получить выгоду на разнице цен).

Unit 9. Exchange Rate Regimes.

The Factors Influencing Their Value

And the Balance of Payments

Preview Basic notions

The conceptual differences between the depreciatio n

Schools of economic thought are reflected i n fle xiblet, floahting, flucteuating,

Variety of exchange rate theories. T h e i firxe d,p pegrgead, cadjutsitedcal

Aim is to find effective a d j u s t m e nextc hmangeec rahteasnisms

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Practice there is. In this unit we are going to