Term 1: Economics and Finance Glossary, Quizzes of Political Economy

Download Term 1: Economics and Finance Glossary and more Quizzes Political Economy in PDF only on Docsity! TERM 1 Foreign Domestic Investment( FDI) DEFINITION 1 provies a good source of labor; gives foreign investors tax cuts (incentives) to bring in foreign factories and train workers TERM 2 TORT DEFINITION 2 Civil liability cases- established a ceiling for how many people can sue TERM 3 Central banks prevent.. DEFINITION 3 inflation TERM 4 Speculations DEFINITION 4 Making educated guesses on excchange rates TERM 5 Hot Money DEFINITION 5 unregulated money that moves across borders quickly TERM 6 Central Bank DEFINITION 6 controls exchange rates TERM 7 Top Currency DEFINITION 7 strongest currency TERM 8 Reserve currency DEFINITION 8 currency that is used in an emergency situation TERM 9 Plaza Accord DEFINITION 9 An agreement in 1985 between the G5 and the US that intervened in currency markets tp cause the depreciation of the US dollar -collectively manage exchange rates TERM 10 Private Capital Flows DEFINITION 10 the cross border movement of money by nonoffical sources ex. direct investments, TNCs, and portfolio investments TERM 21 As the dollar depreciates in value, then the demand for the dollar increases or decreses? DEFINITION 21 decreases TERM 22 Fixed Exchange Rate System DEFINITION 22 Based on Gold; Link the value of currency on the price iteself; was self-regulating, but didn't allow the US with the ability for economic growth TERM 23 A depreciated dollar leads to what...? DEFINITION 23 more spending TERM 24 Keynsian Compromise DEFINITION 24 to believe that there is a positive role for state to play in domestic affairs and in international affairs -ideas are reflected in the Bretton Woods institutions and policies TERM 25 World Bank or IMF? -decides how and what the goverment spends money on? - long term loans -uses other organizations to promote e DEFINITION 25 World Bank TERM 26 World Bank or IMF? - macro issues: exchange rates, int'l trade policy, balance payments - oversee monetary system -short term loa DEFINITION 26 IMF TERM 27 International Monetary Fund (IMF) DEFINITION 27 primary role is to prevent and resolve currency crisis primarily in the developing world