Appreciation: An upward movement of the Australia dollar (or any currency) against another currency. Balance of trade: The difference between the value of a nations imports and the value of its exports. Business cycle: The cyclical fluctuations in the level of economic activity that an economy goes through over time. Comparison rate: Loan Interest rates calculated after adding fees and charges to the lenders advertised rate. Consumer Price Index: (CGI) Australia’s man measure of Inflation. Default: The inability to repay borrowed money.
Depreciation: A downward movement of the Australia dollar (or any currency) against another Depression: A severe contraction in the level of economic activity resulting in many business failures; high and sustained levels of unemployment and sometimes-falling prices. Foreign debt: The amount of money a country has borrowed from overseas sources. Foreign exchange (Force or ) market: This market determines the price of one currency, relative to another. Foreign exchange rate: The ratio of one currency to another. Investment: The purchase of new plant and equipment.