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Free Floating Exchange Rate System
A currency system where the value of a country's currency is determined by the supply and demand for the currency in the foreign exchange market, without direct government control.
Trade Deficit
A situation where a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in.
Billion
A numerical value equal to 1,000 million in the short scale and 1,000,000 million in the long scale.
Depreciates In Value
The process by which an asset loses value over time.
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