lesson-17International-Monetary-System-and-Exchange-Rate-4PPT優(yōu)秀課件

1、1Lesson 17International Monetary System and Exchange Rate2Business Knowledge:n(1)The international monetary systemnA.Sterling-based gold standardnB.Dollar-based gold standardnC.The floating systemn(2)Exchange ratenA.Fixed exchange ratenB.Flexible exchange ratenC.Major factors influencing exchange ra

2、tena.International balance of paymentnb.Inflationnc.Interest rate3nD.Common measures for intervention in exchange ratena.Buying or selling foreign currencynb.Raising or lowering discount ratenc.Foreign exchange controlnE.The pros and cons of the two different kinds of exchange ratenF.Direct quote an

3、d indirect quotenG.Buying price, selling price medial price4nThe earliest international monetary system was known as the gold standard under which countries pledged (promised) to change their paper currencies into gold when requested to do so. The gold standard created a fixed exchange rate system a

4、s each country pegged (fix掛鉤掛鉤) the value of its currency to gold to establish its par value (平價(jià)平價(jià)/票面價(jià)值票面價(jià)值) (face value). For most of the 19th century till the end of the First World War, major trading countries followed this system and the British Pound was the most important currency in internati

5、onal business as a result of the economic, political and military power of the United Kingdom, hence the term sterling-based gold standard. (pound sterling)5ngold standard 金本位制金本位制nA monetary system formerly used by many countries, under which the value of the standard unit of currency was by law ma

6、de equal to a fixed weight of gold of a stated fineness. Thus the rates of exchange between various gold-standard countries remained fixed.n以前許多國(guó)家采用的一種貨幣制度，按此制以前許多國(guó)家采用的一種貨幣制度，按此制定，貨幣的標(biāo)準(zhǔn)單位的價(jià)值根據(jù)法律規(guī)定，定，貨幣的標(biāo)準(zhǔn)單位的價(jià)值根據(jù)法律規(guī)定，相當(dāng)于規(guī)定成色的固定分量的黃金。因此，相當(dāng)于規(guī)定成色的固定分量的黃金。因此，各個(gè)金本位制國(guó)家之間的匯率保持固定不變。各個(gè)金本位制國(guó)家之間的匯率保持固定不變。6nPled

7、ge: promise solemnly and formally; give as a guaranteen 保證，許諾保證，許諾npledge oneself 宣誓；保證宣誓；保證 npledge of allegiance 效忠誓言效忠誓言ncash pledge 押金押金nHe would keep his pledge to the utmost of his power. n他將極力信守他的誓言。他將極力信守他的誓言。7nExchange rate匯率、兌換率匯率、兌換率:n It refers to the price at which one currency can be e

8、xchange for another currency.n一種貨幣兌換成另一種貨幣的價(jià)格一種貨幣兌換成另一種貨幣的價(jià)格8npeg 釘住，固定釘住，固定nkeep(a price,etc) at a set level or keep unchanged9npar vaule 平價(jià)平價(jià)nThe official exchange rate of the home currency against foreignh currencies. It is the rate of exchange at par, i.e. without either premium or discount, and

9、 lies somewhere between the buying rate and the selling rate current in the market.n本幣對(duì)外幣的官方匯率。這是按平價(jià)的匯本幣對(duì)外幣的官方匯率。這是按平價(jià)的匯率，即無(wú)升水也無(wú)貼水，平價(jià)匯率介于市率，即無(wú)升水也無(wú)貼水，平價(jià)匯率介于市場(chǎng)上的現(xiàn)行買(mǎi)入?yún)R率與賣(mài)出匯率之間。場(chǎng)上的現(xiàn)行買(mǎi)入?yún)R率與賣(mài)出匯率之間。10nThe pressure caused by the First World War on economy coupled with (together with連同連同) the impact of the Gr

10、eat Depression (大蕭條大蕭條) put an end to(結(jié)束結(jié)束)the fixed exchange rate system. The Bank of England was no longer able to redeem (贖回，兌換贖回，兌換) its paper currency for gold at par value (以面值以面值) (無(wú)力將其紙幣以平價(jià)兌換成黃金無(wú)力將其紙幣以平價(jià)兌換成黃金) and allowed its value to be determined by supply and demand (market). With Britain

11、 abandoning (放棄放棄)the gold standard, there appeared different areas in the world. Some countries pegged their currencies to the sterling(英鎊英鎊), some countries to the US dollar and some to the French Franc, forming the “sterling area”, “dollar area” and “franc area”. 11nRedeem: save from sins; restor

12、e the honor or worth of; to turn in (vouchers or coupons) and receive something in exchange; exchange or buy back for money; under threatnvt. 贖回；挽回；兌換；履行；補(bǔ)償；恢復(fù)贖回；挽回；兌換；履行；補(bǔ)償；恢復(fù)nShe is going to redeem her diamond ring. n她將贖回她的鉆石戒指。她將贖回她的鉆石戒指。nHe had no way to redeem his furniture out of pawn. n他無(wú)法贖回典

13、當(dāng)?shù)募揖?。他無(wú)法贖回典當(dāng)?shù)募揖摺?2nThis period witnessed the degeneration(衰落衰落)of the international monetary system as some major countries vied(vie - compete)to (競(jìng)相競(jìng)相)devaluate their currencies to make their export goods more competitive.(競(jìng)爭(zhēng)性貶值競(jìng)爭(zhēng)性貶值) (這一時(shí)期，世界貨幣這一時(shí)期，世界貨幣體系不斷惡化，各主要貿(mào)易國(guó)家競(jìng)相將其貨幣貶體系不斷惡化，各主要貿(mào)易國(guó)家競(jìng)相將其貨幣貶值以提

14、高他們出口物品的競(jìng)爭(zhēng)力值以提高他們出口物品的競(jìng)爭(zhēng)力) The benefits brought about by their devaluation were, needless to say (不用說(shuō)不用說(shuō)), offset(抵消抵消)by what their competitors did. International trade contracted (shrink收縮收縮) and economic conflict finally led to the Second World War. 13nDegeneration: the process of declining from

15、a higher to a lower level of effective power or vitality or essential quality; the state of being degenerate in mental or moral qualitiesn退化；墮落；惡化退化；墮落；惡化nThe degeneration of sb.s charactern某人品質(zhì)的墮落某人品質(zhì)的墮落nThe degeneration of a political systemn政治制度的腐化政治制度的腐化nThis period witnessed the degeneration of

16、 the international monetary system.n這一時(shí)期，世界貨幣體系不斷惡化。這一時(shí)期，世界貨幣體系不斷惡化。14nOffset: compensate for or counterbalance; make up for; cause (printed matter) to transfer or smear onto another surfacen抵消；彌補(bǔ)抵消；彌補(bǔ)noffset printing 膠印，平版印刷；膠版印刷；平板印刷膠印，平版印刷；膠版印刷；平板印刷nfrequency offset 頻率偏移；頻率偏置頻率偏移；頻率偏置noffset pres

17、s 膠印機(jī)膠印機(jī)noffset paper 膠版紙；膠版印刷紙；平版機(jī)上漿紙膠版紙；膠版印刷紙；平版機(jī)上漿紙noffset print 膠版印刷膠版印刷n“By investing in it, we can count it as an offset,” she said. n她說(shuō)：她說(shuō)：“通過(guò)對(duì)其投資，我們可以把它視為一項(xiàng)補(bǔ)償。通過(guò)對(duì)其投資，我們可以把它視為一項(xiàng)補(bǔ)償?！?5nContract: enter into a contractual arrangement; make smaller; become smaller or draw togethern收縮；感染；訂約收縮；感染；訂

18、約ncontract with 承包；與承包；與訂有合約訂有合約nlabor contract n. 勞工合同勞工合同ncontract management 合同管理合同管理nbreach of contract 違約；違反合同違約；違反合同nThey lost on the contract. n他們?cè)诤贤腺r了錢(qián)。他們?cè)诤贤腺r了錢(qián)。nMetals contract as they become cool.n金屬冷卻時(shí)就會(huì)收縮。金屬冷卻時(shí)就會(huì)收縮。nIn the Second World War, international trade contracted.n二戰(zhàn)期間，世界貿(mào)易額不斷縮

19、小。二戰(zhàn)期間，世界貿(mào)易額不斷縮小。16nTowards the end of the Second World War (1944) representatives of 44 countries gathered at Bretton Woods (布雷頓森林布雷頓森林) to renew(更新更新)the gold standard on a greatly modified basis(在修改較大的基礎(chǔ)上在修改較大的基礎(chǔ)上). One important fruit of the conference is the creation (establishment創(chuàng)立創(chuàng)立) of the

20、International Bank for Reconstruction and Development (IBRD)and the International Monetary Fund. (1944)17nThe Bretton Woods Conference established a US dollar based gold standard. Because of the dominating (主導(dǎo)性的主導(dǎo)性的) economic and political influence of the United States, the dollar replaced the ster

21、ling(英鎊英鎊)as the major vehicle(工具工具)for international settlement(國(guó)際結(jié)算國(guó)際結(jié)算). （由于美國(guó)由于美國(guó)在國(guó)際經(jīng)濟(jì)、政治中的統(tǒng)治性影響，美元替代英在國(guó)際經(jīng)濟(jì)、政治中的統(tǒng)治性影響，美元替代英鎊成了國(guó)際結(jié)算中的主要工具。鎊成了國(guó)際結(jié)算中的主要工具。）Though all the Bretton Woods participants(與會(huì)國(guó)與會(huì)國(guó))agreed to peg their currencies to gold, only the United States pledged to redeem the dollar for

22、 gold at the request of the central bank of a foreign country. Under the new fixed exchange rate system, each participant promised to maintain the par value(面值面值)of its currency(與黃金的兌換與黃金的兌換價(jià)價(jià)), allowing a fluctuation of only one percent. 18nVehicle: a conveyance that transports people or objects; a

23、 medium for the expression or achievement of somethingn車(chē)輛；工具；交通工具；運(yùn)載工具；傳播媒介；媒介物車(chē)輛；工具；交通工具；運(yùn)載工具；傳播媒介；媒介物nmotor vehicle 汽車(chē)；機(jī)動(dòng)車(chē)輛汽車(chē)；機(jī)動(dòng)車(chē)輛nelectric vehicle 電動(dòng)車(chē)輛電動(dòng)車(chē)輛nvehicle maintenance 汽車(chē)維護(hù)，車(chē)輛保養(yǎng)汽車(chē)維護(hù)，車(chē)輛保養(yǎng)ncommercial vehicle 商用車(chē)輛商用車(chē)輛nlaunch vehicle 運(yùn)載火箭運(yùn)載火箭nThe red traffic light indicates that every person

24、and vehicle must stop. n紅色信號(hào)燈表示人和車(chē)輛不能通行。紅色信號(hào)燈表示人和車(chē)輛不能通行。nArt may be used as a vehicle for propaganda.n藝術(shù)可用作宣傳工具。藝術(shù)可用作宣傳工具。19nFluctuation: the quality of being unsteady and subject to changes; an instance of change; the rate or magnitude of changenn. 起伏，波動(dòng)起伏，波動(dòng)nIt turns out we have several readings w

25、ith a high fluctuation from their neighbors.n結(jié)果證明，我們有一些讀數(shù)相對(duì)于其相鄰點(diǎn)有大結(jié)果證明，我們有一些讀數(shù)相對(duì)于其相鄰點(diǎn)有大的波動(dòng)。的波動(dòng)。nEconomic fluctuations are booms and slumps when industrial activity rises and falls.n經(jīng)濟(jì)波動(dòng)指工業(yè)活動(dòng)上下變動(dòng)的興旺和衰退。經(jīng)濟(jì)波動(dòng)指工業(yè)活動(dòng)上下變動(dòng)的興旺和衰退。20nThe country concerned had to intervene(干干預(yù)預(yù))if the market value （(有別于賬面價(jià)值的有別

26、于賬面價(jià)值的)市場(chǎng)價(jià)值，銷(xiāo)售價(jià)格市場(chǎng)價(jià)值，銷(xiāo)售價(jià)格）of its currency goes beyond the range(1%). Under special circumstances, a country was allowed to adjust the par value of its currency(與黃金的兌換價(jià)與黃金的兌換價(jià)). Thus the Bretton Woods system is said to be using an adjustable peg (可調(diào)整的固定匯率可調(diào)整的固定匯率). The new system was also called by s

27、ome people the “New Gold Standard System.” This relative stability in exchange rates facilitated(promoted促進(jìn)促進(jìn)) international business till the beginning of 1970s.21nUnder the Bretton Woods System, people would hold (持有持有) dollars so long as(如果如果)they trusted the convertibility(可兌換性可兌換性)of the dollar

28、 into gold. With the increase of foreign dollar holdings to finance(provide fund for)trade expansion(為貿(mào)易增長(zhǎng)提供資金為貿(mào)易增長(zhǎng)提供資金), the faith of dollar holders decreased in the ability of the United States to redeem the dollar for gold. (為為了給其貿(mào)易增長(zhǎng)提供資金，外國(guó)人持有的美元了給其貿(mào)易增長(zhǎng)提供資金，外國(guó)人持有的美元越來(lái)越多。同時(shí)，他們對(duì)美國(guó)政府把美元兌換越來(lái)越多。同時(shí)，他們

29、對(duì)美國(guó)政府把美元兌換成黃金的信心卻越來(lái)越低。成黃金的信心卻越來(lái)越低。)To reduce the demand for the dollar as a reserve currency(儲(chǔ)儲(chǔ)備貨幣備貨幣), the special drawing right(特別提款特別提款權(quán)權(quán))was created (設(shè)立設(shè)立). 22nReserve currency 儲(chǔ)備貨幣儲(chǔ)備貨幣nIt refers to the currency which is held as part of their official reserves by the governments of other countri

30、es, because these governments have confidence in its value remaining high and in its usefulness in settling future international debts. The two main reserve currencies are the US dollar and the pound sterling.n它是由其他國(guó)家政府作為官方儲(chǔ)備的一部分而持有它是由其他國(guó)家政府作為官方儲(chǔ)備的一部分而持有的貨幣。因?yàn)檫@些政府相信這類(lèi)貨幣的幣值能維持的貨幣。因?yàn)檫@些政府相信這類(lèi)貨幣的幣值能維持在較

31、高水平，可以用來(lái)償付未來(lái)的國(guó)際債務(wù)。兩種在較高水平，可以用來(lái)償付未來(lái)的國(guó)際債務(wù)。兩種主要的貨幣是美元和英鎊。主要的貨幣是美元和英鎊。23nUsed to settle official transactions(結(jié)算官方交結(jié)算官方交易易)at the IMF, SDRs are sometimes called paper gold(紙黃金紙黃金). Despite the new liquidity(流動(dòng)性流動(dòng)性) injected by SDRs into the international monetary system, United States was still unable t

32、o meet the demands of foreign dollar holders for gold(把美元兌換成把美元兌換成黃金的需求黃金的需求). On August 15, 1971 the US Administration announced severing(sever: cut off)link between the dollar and gold, signifying (標(biāo)志著標(biāo)志著) the collapse of the Bretton Woods system. (marking the end to BWS)Since then, international

33、business has relied increasingly on the flexible exchange rate system. 24nMost major currencies (hard currencies)began to float (浮動(dòng)浮動(dòng)) in the foreign exchange market. Other currencies followed a fixed exchange rate by pegging(釘住釘住)themselves to a major currency such as the dollar, or the French Fran

34、c and float with it. From 1976 countries ceased to stipulate gold par value (金平價(jià)金平價(jià)) to their paper currencies，leaving the price of their respective(各自的各自的) currency to be decided by the interaction(相互作用相互作用)of supply and demand.25nInteraction: a mutual or reciprocal action; interactingn相互作用；交互作用相互作

35、用；交互作用ninteraction with 交往；與交往；與相互作用相互作用ninteraction design 交互設(shè)計(jì)；互動(dòng)設(shè)計(jì)交互設(shè)計(jì)；互動(dòng)設(shè)計(jì)nsocial interaction 社會(huì)互動(dòng)社會(huì)互動(dòng)nhuman-computer interaction 人機(jī)交互人機(jī)交互npositive interaction n. 正相互作用正相互作用nI have some chance for interaction with them sometimes.n有時(shí)我有跟他們交往的機(jī)會(huì)。有時(shí)我有跟他們交往的機(jī)會(huì)。26nFactors influencing the exchange rate

36、 include the following:n1.International balance of payment (BOP) (國(guó)際收支國(guó)際收支).nIt has a direct bearing(influence)on the supply and demand of foreign exchange. The value of ones own currency will go up(貨貨幣升值幣升值)with favorable balance of payment (國(guó)際收支順差國(guó)際收支順差) and drop with BOP deficit (國(guó)際收支逆差國(guó)際收支逆差). n

37、BOP deficit unfavorable BOPnBOP surplus favorable BOP27n2. Inflation. It is closely related to the real value of the currency and the competitiveness競(jìng)爭(zhēng)力競(jìng)爭(zhēng)力 of the commodity. When inflation intensifies(加劇加劇), the value of the currency will drop(其貨幣價(jià)值相對(duì)于外幣將會(huì)下降其貨幣價(jià)值相對(duì)于外幣將會(huì)下降)(貶貶值值)relative to foreign c

38、urrencies and vice versa.n3. Interest rate利率利率. Under specific conditions, high interest rate will attract short term international fund, increasing the exchange rate of ones own currency and vice versa. 28nvice versa: adv. with the order reversedn反之亦然反之亦然nYou hide nothing of yourself and can tell t

39、he other anything because you know they accept you just the way you are and vice versa. n你絲毫也不掩飾自己，能告訴對(duì)方任何事情你絲毫也不掩飾自己，能告訴對(duì)方任何事情，因?yàn)槟阒缹?duì)方接受的就是你現(xiàn)在的這個(gè)，因?yàn)槟阒缹?duì)方接受的就是你現(xiàn)在的這個(gè)樣子，反之亦然。樣子，反之亦然。n我們?cè)诒澈笞h論他們，反過(guò)來(lái)，他們也在背我們?cè)诒澈笞h論他們，反過(guò)來(lái)，他們也在背后議論我們。后議論我們。nWe gossip about them and vice versa.29nThe above factors may work a

40、lone or collectively (together). Sometimes their influences may offset each other. Generally speaking, however, international balance of payment is the most important factor in deciding the trend of exchange rate. In addition, foreign exchange policies, political events and speculation activities (投

41、機(jī)活動(dòng)投機(jī)活動(dòng)) may also have a role to play in the fluctuations of exchange rate.30nThe flexible exchange rate system has never been clean float (清潔浮動(dòng)清潔浮動(dòng))or free float(自由浮動(dòng)自由浮動(dòng)). The central banks take various measures to intervene in the price of its currency. So the current practice is often called a m

42、anaged float管理浮動(dòng)管理浮動(dòng) or dirty float(骯臟浮動(dòng)骯臟浮動(dòng)). The common measures taken for intervention are: 31nClean float 清潔浮動(dòng)，自由浮動(dòng)清潔浮動(dòng)，自由浮動(dòng)nClean float is also called a true free float. It refers to the float allowed to move freely. Probably the closest to this is in the U.S., where the Federal Reserve has int

43、ervened only rarely and has declare its action after the event.n清潔浮動(dòng)又稱(chēng)完全自由浮動(dòng)，指匯率完全自清潔浮動(dòng)又稱(chēng)完全自由浮動(dòng)，指匯率完全自由浮動(dòng)。可能最接近自由浮動(dòng)的是美國(guó)，美由浮動(dòng)?？赡茏罱咏杂筛?dòng)的是美國(guó)，美聯(lián)儲(chǔ)很少干預(yù)，直到事發(fā)后才宣布其行動(dòng)。聯(lián)儲(chǔ)很少干預(yù)，直到事發(fā)后才宣布其行動(dòng)。32nDirty float 不自由浮動(dòng)，有干預(yù)浮動(dòng)或骯不自由浮動(dòng)，有干預(yù)浮動(dòng)或骯臟浮動(dòng)臟浮動(dòng)n it refers to more heavily managed float, indicating that countrys central

44、 bank intervenes regularly to influence the currencys level by buying or selling.n指嚴(yán)重管理的浮動(dòng)，表明該國(guó)中央銀行通指嚴(yán)重管理的浮動(dòng)，表明該國(guó)中央銀行通過(guò)買(mǎi)入或賣(mài)出進(jìn)行干預(yù)從而影響其貨幣的過(guò)買(mǎi)入或賣(mài)出進(jìn)行干預(yù)從而影響其貨幣的水平。水平。33n1. foreign exchange reserves: When the price of a foreign exchange goes too high, the central bank may increase its supply by selling it

45、out of its foreign exchange reserves. And in the opposite case, it can buy the currency in the market to increase its reserves.n2. the discount rate: When the price of a foreign exchange goes too high, the government may raise the discount rate to absorb foreign fund to increase foreign exchange inc

46、ome/earnings of the country and vice versa.34nDiscount 貼現(xiàn)貼現(xiàn)nA sum of money allowed for immediate payment of a sum due at a later daten允許為日后到期的款項(xiàng)立即兌現(xiàn)所支允許為日后到期的款項(xiàng)立即兌現(xiàn)所支付的一筆款項(xiàng)。付的一筆款項(xiàng)。35n3. foreign exchange control: In case of acute（劇烈的劇烈的） exchange rate fluctuation(波動(dòng)波動(dòng)), a government may have to resor

47、t to(訴諸于；使訴諸于；使用用) foreign exchange control or raise foreign loans(collect籌集外來(lái)資金籌集外來(lái)資金)to make up its balance of payment deficit(填補(bǔ)國(guó)際收支赤填補(bǔ)國(guó)際收支赤字字)and lower the demand for foreign exchange.nForeign exchange income/earningnForeign exchange reverse nForeign exchange controlnForeign exchange shortage36n

48、The two different exchange rate systems each has its own advantages. The fixed exchange rate system reduces the riskiness of international business and is also an important measure to curb (抑制抑制) inflation.However the system is vulnerable to (容易受容易受到傷害到傷害easy to be affected by) disorderly changes (無(wú)

49、無(wú)序變化序變化) in currency value. The most recent example is the Asian Financial Crisis of 19971998 when the fixed exchange rate adopted by some Southeast Asian countries like Thailand and Indonesia collapsed and dealt a heavy blow to (重創(chuàng)重創(chuàng))the economy. 37nUnder the flexible exchange rate system fluctuati

50、ons of the exchange rate within a definite period of time will not immediately affect domestic money circulation （貨幣流通貨幣流通）and is helpful to the stability of the economy. Flexible exchange rate can also protect domestic currency from the impact of foreign idle fund（閑置資金）（游資、熱錢(qián)（閑置資金）（游資、熱錢(qián)hot money)a

51、nd helps to prevent the drain (流失流失) of foreign exchange reserve. But frequent wild swings (fluctuation)of the value of currencies will increase the riskiness of trade and affect international investment.38nIdle funds 游資游資nIdle funds are the money held in the form of cash or held in idle balances.n指

52、以現(xiàn)金形式持有或以閑置余額形式所指以現(xiàn)金形式持有或以閑置余額形式所持有的資金。持有的資金。39nExchange rates are published daily in two different ways. A direct exchange rate is the price of a foreign currency in terms of （根據(jù)）（根據(jù)）the home currency(用本幣表示外幣的價(jià)格用本幣表示外幣的價(jià)格). In a direct quote, an amount of foreign currency, usually one unit or one h

53、undred units is taken as the standard and the equivalent amount of home currency(等量本幣等量本幣)is marked after it. An indirect exchange rate is the price of home currency in terms of a foreign currency(用外幣用外幣表示本幣的價(jià)格表示本幣的價(jià)格). In an indirect quote one unit or one hundred units home currency is taken as the

54、 standard and the equivalent of foreign currency(等量外幣等量外幣)is given. 40nDirect quote / quotation（匯率）直（匯率）直接標(biāo)價(jià)接標(biāo)價(jià): A direct exchange rate is the price of a foreign currency in terms of the home currency. n1美元美元=6.8元元 外幣為基準(zhǔn)外幣為基準(zhǔn)41nIndirect quote / quotation（匯率）間接（匯率）間接標(biāo)價(jià)標(biāo)價(jià): nAn indirect exchange rate i

55、s the price of home currency in terms of a foreign currency.42nFor instance 100 USD/826.57RMB (or 826.57RMB/100USD) is direct exchange rate from the Chinese perspective and indirect exchange rate from the American perspective. The two different quotes are used in different countries or regions mainl

56、y as a tradition or for convenience. Most countries or regions including China use the direct quote, but the United States and Britain use the indirect quote.43nThere are three types of foreign exchange price. The buying rate refers to the rate by which a commercial bank buys a currency. The selling

57、 rate is the rate by which a bank sells a currency. The medial rate is the average of the two. It is used in transactions between the banks and is not applicable to common customers. The difference between the buying rate and the selling rate varies from 1 per mil (千分千分) to 5 per mil which constitut

58、es the profit of the bank. In the case of direct quote, the first figure after the fixed amount of foreign currency is the buying rate and the second figure is the selling rate. 44nBuying rate買(mǎi)入價(jià)買(mǎi)入價(jià): nIt refers to the rate by which a commercial bank buys a currency.nSelling rate賣(mài)出價(jià)賣(mài)出價(jià): nIt is the ra

59、te by which a bank sells a currency.nMedial rate中間價(jià)中間價(jià) nIt is the average of the buying rate and the selling rate.45nAnd in the case of indirect quote the first figure after the fixed amount of home currency is the selling rate and the second figure is the buying rate.46Business Knowledgethe interna

60、tional monetary system: the kind of convertibility adopted by governments of the world for its currency, whether freely into gold as under the gold standard, or into paper of some kind, as under a paper standard.The gold standard: is the earliest international monetary system under which countries p