Macro: Unit 5.2 -- The Foreign Exchange Market

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
Explain how exchange rates work
Discuss currency appreciation and depreciation and how it impacts the price of imported
and exported goods
Practice calculating currency conversion at a given exchange rate
Define foreign exchange demand
Explain the factors that contribute to the inverse relationship between exchange rates
and currency demanded
Define foreign exchange supply
Explain the factors that contribute to the positive relationship between exchange rates
and currency supplied
Identify the 4 components of foreign exchange supply and demand
Use graphs to analyze how a change in currency demand will impact exchange rates
Use graphs to analyze how a change in currency supply will impact exchange rates


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