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Purchasing Power
The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy, often impacted by inflation.
Fixed Exchange Rates
A currency system where the value of a country's currency is pegged at a fixed rate to another currency or a basket of currencies, making it stable against those currencies.
Foreign Exchange Reserves
Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.
Domestic Money Supply
Refers to the total amount of money available within a country's economy at a specific time, including cash, coins, and balances held in bank accounts.
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