(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
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| appreciate | to increase, as when a currency's price rises in comparison to the price of another currency (See page(s) 364) |
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| balance of trade | for both goods and services, receipts (inflows of Canadian dollars) less payments (outflows of Canadian dollars) (See page(s) 357) |
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| balance-of-payments deficit | a negative net balance on the balance-of-payments statement, demonstrating lower receipts than payments for the current and capital and financial accounts combined; balanced with changes in official reserves (See page(s) 359) |
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| balance-of-payments surplus | a positive net balance on the balance-of-payments statement, demonstrating greater receipts than payments for the current and capital and financial accounts combined; balanced with changes in official reserves (See page(s) 359) |
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| capital account | the summary of transfers of ownership of savings and intangible assets (See page(s) 357) |
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| capital and financial accounts deficit | a negative net balance in the capital and financial accounts, demonstrating higher investments by Canadians in foreign markets than by foreigners in the Canadian economy (See page(s) 359) |
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| capital and financial accounts surplus | a positive net balance in the capital and financial accounts, demonstrating lower investments by Canadians in foreign markets than by foreigners in the Canadian economy (See page(s) 359) |
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| change in official reserves | use of the government's reserves of foreign currency to influence the international value of the Canadian dollar, as shown on the balance-of-payments statement (See page(s) 360) |
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| current account | the summary of all foreign transactions associated with current economic activity in Canada and involving Canadian dollars (See page(s) 355) |
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| current account deficit | a negative net balance in the current account resulting from lower receipts than payments for merchandise and nonmerchandise transactions (See page(s) 357) |
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| current account surplus | a positive net balance in the current account resulting from higher receipts than payments for merchandise and nonmerchandise transactions (See page(s) 357) |
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| demand for Canadian dollars | the relationship between the price of a Canadian dollar and the quantity demanded in exchange for another currency (See page(s) 363) |
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| depreciate | to decrease, as when a currency's price falls in comparison to the price of another currency (See page(s) 365) |
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| devaluation | a reduction in the value of a currency by the government that sets the exchange rate (See page(s) 371) |
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| direct investment | financial investment (purchases of stocks) that gives the buyer of the financial assets a controlling interest in the institution issuing the assets (See page(s) 358) |
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| financial account | the summary of all foreign transactions of financial assets involving Canadian dollars (See page(s) 357) |
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| fixed exchange rates | currency exchange rates set or "pegged" to a certain value by each country's government (See page(s) 368) |
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| flexible exchange rates | currency exchange rates that are allowed to move freely to their equilibrium levels; also called floating rates (See page(s) 368) |
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| foreign exchange market | the global market in which national currencies are traded (See page(s) 362) |
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| managed float | a flexible exchange rate system that sometimes involves short-term government intervention (See page(s) 372) |
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| merchandise balance of trade | merchandise export receipts minus merchandise import payments (See page(s) 355) |
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| portfolio investment | financial investment (purchases of stocks and bonds) that does not give the buyer a controlling interest in the institution issuing the assets (See page(s) 358) |
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| revaluation | an increase in the value of a currency by the government that sets the exchange rate (See page(s) 371) |
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| speculators | individuals or organizations that buy and sell currencies for profit (See page(s) 367) |
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| supply of Canadian dollars | the relationship between the price of a Canadian dollar and the quantity supplied in exchange for another currency (See page(s) 364) |