Currency Trading Terminology
Macroeconomic indicators?
Can someone explain in simple terminology the following and how they effect the economy of a country.
1. GDP
2. Inflation
3. Trade deficit and imbalance of trade
4. Currency devaluation
5. Foreign exchange reserves
6. Annual growth
7.Borrowing of government from state bank
8. Per ca pita income
9. Undocumented economy
1- well GDP (Gross Domestic Product) refers to the total value of the goods and services produced within a country during a year.
2 – inflation is a rise in the general price level of goods and services within a country during a year. means if there’s an increase in the price level of MOST goods, its said that inflation has taken place.
3 – trade deficit – when a country’s imports are greater than its exports. so basically a country is spending more than it is gaining in revenue. imbalance of trade perhaps refers to the same thing too – where the imports and exports are unbalanced
4 – can be both deliberate and circumstantial. deliberate is during bad worse times the country may deliberately devalue its currency. (against other currencies) which i think benefits the citizens because their purchasing power hence increases. circumstantial is when there is a greater money flow into the economy, and the supply and demand adjusts so when supply exceeds, the price goes down.
5 – a last resort money stash that a country always has. they always resort to it when they have no money left in the bank 
6 – self explanatory? the rate of increase in a country’s gdp over the years
7 – er… not so sure
8 – total gdp divided by the population. so it gives an estimate of how much each person in the country earns
9 – dunno this either….
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