Exchange rate

What is the dependence of the exchange rate on inflation rates in a country with a larger or

smaller size of international trade in goods, services, and capital? Why does it take place? Substantiate

Your version.

Does the active balance of payments of a country promote an increase of the national exchange

rate?

What tendency will the negative balance of payments cause in relation to the national exchange

rate?

In what way does economic policy of a state in the adjustment of constituent parts of the balance

of payments (debit balance: or credit balance) affect the national exchange rate?

In what way do the factors determining the level of national income affect the national exchange

rate? Does the increase of the domestic demand show an upward tendency or a decline

in this rate?

Written Practice

Write an essay of about 300—350 words on the unit.

Unit 10. International Financial Institutions

Preview Basic notions B a s i c n o t io n s

In this unit we are going to familiarize financial organization — bankourselves

With the activities of interna relations; tional fina nratio

cial institutions the main p u r p o s e fsina nociafl f wundsh, riescouhrce sa, creedit:sdnu f

A) to develop international cooperation; development

B) to stabilize the world economy; restrictions, limitations, constraint,