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Explain the basic concept of power and then compare and contrast the five basic sources of power.
Managed Floating Exchange Rate
An exchange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments via their buying and selling of particular currencies.
Central Banks
Financial institutions responsible for the oversight of the monetary system for a nation or group of nations, controlling policies like interest rates and money supply.
Foreign Exchange
The exchange of one currency for another, or the conversion of one currency into another currency.
Trade Deficits
A situation in which a country's imports exceed its exports during a given time period.
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