UNIT VII Foreign Exchange

the buying and selling of currency
appreciation

-the value of the currency is strong
-the dollar buys more of another currency which results in less expensive imports and more expensive exports
-imports increase because they are cheaper and creates a trade deficit

depreciation
-weak dollar
-the dollar buys less of another currency and results in more expensive imports and less expensive exports
-brings about cheap exports

will always have 2 graphs
-US market and the other market