Term
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Definition
| Purest form of the precious metal and usually in a bar or coin format. Often refers to gold or silver bars or coins; typically used for monetary or economic purposes |
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Term
| International Monetary System |
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Definition
| The system and rules that govern the use of money around the world and between countries |
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Definition
| The pre World War I global monetary system that used gold as the basis of international economic exchange. |
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Term
| Fixed exchange rate system |
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Definition
| A system in which the price of one currency vis-à-vis another is fixed and does not change |
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Definition
| The price of one currency in terms of a second currency |
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Term
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Definition
| When the value of imports is greater than the value of exports |
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Term
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Definition
| When a currency's value increases or decreases based on demand and supply |
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Term
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Definition
| Named after the economist Robert Triffin, who stated that the more dollars foreign countries held, the less faith they had in the ability of the US government to convert those dollars. |
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Term
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Definition
| There are several different kinds of reserves, which refers to a percentage of an asset. Countries maintain foreign exchange reserves (also called forex reserves or FX reserves), which is money or other assets held by a central bank or other monetary authority so that it can pay if need be its liabilities. Bank reserves refers to the holdings of deposits in central banks plus currency that is physically held in bank vaults. |
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Term
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Definition
| A main currency that many countries and institutions hold as part of their foreign exchange reserves. Reserve currencies are often international pricing currencies for world products and services. Current reserve currencies are the US dollar, the euro, the British pound, the Swiss franc, and the Japanese yen. |
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Term
| Managed float system of exchange rates |
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Definition
| A system in which currencies float against one another with governments intervening only to stabilize their currencies at set target exchange rates. |
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Term
| Free floating exchange rate system |
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Definition
| A system in which currencies freely float against each other and there is no government intervention |
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Term
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Definition
| The original five largest industrial powers - Britain, France, Germany, Japan, and the United States - who met to reduce and stabilize the value of the dollar |
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Term
| Special Drawing Right (SDR) |
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Definition
| An international monetary reserve asset of the IMF (International Money Fund) |
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Term
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Definition
| Official name of the Chinese currency. Yuan is the main unit of the currency |
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