Financial Vocabulary

#321

Reserve requirement

Example sentences

1. The central bank lowered the reserve requirement.
2. The reserve requirement tells banks how much money to keep.
3. A lower reserve requirement may support more lending.

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#322

Quantitative easing

Example sentences

1. The central bank began quantitative easing during the crisis.
2. Quantitative easing involves buying many financial assets.
3. Bond prices rose after quantitative easing was announced.

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#323

Quantitative tightening

Example sentences

1. The central bank started quantitative tightening.
2. Quantitative tightening reduces the central bank's asset holdings.
3. Interest rates rose during quantitative tightening.

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#324

Stagflation

Example sentences

1. The country faced stagflation with high prices and weak growth.
2. Stagflation is difficult for economic policy.
3. Investors worried about signs of stagflation.

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#325

Soft landing

Example sentences

1. The central bank hopes for a soft landing.
2. A soft landing slows inflation without causing a deep recession.
3. Strong employment supported hopes for a soft landing.

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#326

Foreign exchange

Example sentences

1. The bank trades foreign exchange for its customers.
2. Foreign exchange allows businesses to pay in other currencies.
3. The foreign exchange market is open around the world.

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#327

Exchange rate

Example sentences

1. The exchange rate is 1.10 dollars per euro.
2. A changing exchange rate affects travel costs.
3. The exporter checks the exchange rate every day.

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#328

Currency pair

Example sentences

1. EUR/USD is a common currency pair.
2. A currency pair shows the value of one currency against another.
3. The trader selected a currency pair with high activity.

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#329

Base currency

Example sentences

1. In EUR/USD, the euro is the base currency.
2. The base currency appears first in a currency pair.
3. One unit of the base currency is compared with the other currency.

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#330

Quote currency

Example sentences

1. In EUR/USD, the dollar is the quote currency.
2. The quote currency appears second in the pair.
3. The price shows how much quote currency buys one base unit.

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#331

Spot rate

Example sentences

1. The bank used today's spot rate for the payment.
2. The spot rate is the current exchange rate.
3. She compared the spot rate at two banks.

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#332

Forward rate

Example sentences

1. The company locked a forward rate for next month's payment.
2. A forward rate sets an exchange price for a future date.
3. The forward rate protected the firm from a currency change.

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#333

Currency appreciation

Example sentences

1. Currency appreciation made imported goods cheaper.
2. The dollar's currency appreciation hurt some exporters.
3. Investors expected further currency appreciation.

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#334

Currency depreciation

Example sentences

1. Currency depreciation made foreign travel more expensive.
2. The exporter benefited from currency depreciation.
3. Fast currency depreciation increased import prices.

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#335

Devaluation

Example sentences

1. The government announced a devaluation of its currency.
2. The devaluation made exports cheaper for foreign buyers.
3. Import prices rose after the devaluation.

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#336

Revaluation

Example sentences

1. The government approved a revaluation of the currency.
2. The revaluation increased the currency's official value.
3. Exporters worried about the revaluation.

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#337

Floating exchange rate

Example sentences

1. The country uses a floating exchange rate.
2. A floating exchange rate changes with market demand.
3. The central bank rarely controls the floating exchange rate directly.

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#338

Fixed exchange rate

Example sentences

1. The country keeps a fixed exchange rate against the dollar.
2. A fixed exchange rate requires central bank support.
3. The government changed the fixed exchange rate.

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#339

Currency peg

Example sentences

1. The local currency has a currency peg to the dollar.
2. The central bank uses reserves to protect the currency peg.
3. Markets questioned whether the currency peg could continue.

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#340

Foreign exchange reserve

Example sentences

1. The central bank increased its foreign exchange reserve.
2. A foreign exchange reserve can support the national currency.
3. The country used part of its foreign exchange reserve to pay debt.

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