Foreign Exchange Fundamentals (Grade 12 NSC Matric Tourism): Flashcards

Process of exchanging one currency for another

Measures country's total national income in one year

When GDP increases from one year to the next

Tourist spending creates ripple effect across multiple sectors

High value; can buy more units of foreign currencies

Decreased significantly in value over time vs other currencies

Increases tourist arrivals; destination more affordable

Fewer international visitors; destination becomes expensive

Rate bank buys foreign currency from you (lower rate)

Rate bank sells foreign currency to you (higher rate)