Accumulating foreign currency reserves | Foreign exchange and trade | Macroeconomics | Khan Academy

How and why a central bank would build foreign currency reserves Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/currency-reserves/v/using-reserves-to-stablize-currency?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/current-capital-account/v/why-current-and-capital-accounts-net-out?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. Is Trabeplom System helpful to get tons of profit? We have read numerous good things about Trabeplom System (just search it on google).
2. hi guys, the greatest info that i've had was by using the Magic Monitor Blueprint (just google it) definately the most helpful site that I have ever followed.
3. does anybody know what a foreign currency gap is?? my textbook says its a constraint on growth but doesnt really explain it.
4. Yeah nice one now who's going to profit from this little transaction?
5. Hey Sal, give a thought about us everyday users and reply to my comment! Our comments.:)
6. Hey, Khan.... I LOVE YOU BRO!
   
   Keep up the good work!
   
   These videos are FANTASTIC! A+
7. That's why economy is not science, even if thay use scientific methd on "belived" (unreal) value you can't get nothing else than (unreal) belived result. That just like input data has nothing to do with reality.
   Well i think this suppose to be just a game.
   
   In the other side if we would measure material, energy, or similar and than we'd use scientific method to get what we would search for we'd get real answare.
   This is why you should look at resource-based economy.
8. SAL thanks you put it in a very simple way for us to understand thank you now im more interested with numbers after listening to your video 
9. thank you!
10. that's what happens in the video...there was an excess demand for money B so the central bank prints money B -> the supply increases absorbing the increased demand and balancing the money market. / In other words, there was an excess supply of money A , so money A could be "bought" with less money B -> the C.bank prints money B and exchanges it with A as long as money B "buys more" of money A (untill the market is balanced). // It's like the standard process to the equilibrium point(long term)
11. can country B just buy money of country A with the new printed money? and what effect would it have on the currency graph? would it shift the demand curve of A back or shift the supply curve to the right?
12. lol. p.s. way to be a dick.
13. Fixed exchange rates make monetary policy impotent...that's my issue with it.
14. Good explanation. Thanks
15. would this still work if there was no one single national currency i.e. usd. used as international currency?
16. They have year 13 in some Asian countries. I have a friend in HK, she says year 13 is easier than year 12. But that's because year 13 is equivalent to a first year in uni, well it is for Australia anyways. I remember there were videos on You tube, where colleges in America were doing lectures for maths. The maths was the same stuff you learn in year 12 in Australia. So it's just different everywhere :P
17. I'm studying really hard lol :) I want to go to uni to be an engineer, because I love maths :D
18. Great explanation!
19. :S
20. Lower 6th is year 12. Upper 6th is year 13.