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Explain dynamic equilibrium.Use the generic reaction A(g)⇌ B(g)to explain.
Forward Rate
An agreed-upon price for a financial transaction that will occur at a future date, used in the context of foreign exchange and interest rates.
Exchange Rate
The rate at which two different currencies can be traded for each other, affecting global commerce and investment opportunities.
Eurocurrency
Money deposited in a financial centre outside the country whose currency is involved.
Currency Swap
An agreement between two parties to exchange the principal amount and interest in two different currencies.
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