| balance of payments (BOP) | Record of a country's transactions with the rest of the world
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| Bank for International Settlements | Institution for central bankers; operates as their bank
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| Bretton Woods | The New Hampshire town where treasury and central bank representatives met near the end of World War II; they established the IMF, the World Bank, and the gold exchange standard
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| capital account | Record of the net changes in a nation's international financial assets and liabilities
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| current account | Record of a country's exports and imports in goods and services
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| direct investment | Investments located in one country that are effectively controlled by residents of another country
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| euro | Currency of the European Monetary Union
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| fixed currency exchange rates | Rates that governments agree on and undertake to maintain
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| floating currency exchange rates | Rates that are allowed to float against other currencies and are determined by market forces
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| gold standard | The use of gold at an established number of units per currency
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| goods or merchandise account | Record of tangible exports and imports
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| International Monetary Fund | Institution that coordinates multilateral monetary rules and their enforcement
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| Jamaica Agreement | The 1976 IMF agreement that allows flexible exchange rates among members
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| official reserves account | Record of the assets held by the government, gold, foreign currencies, and accounts in foreign banks; a balance of the country's foreign currency
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| par value | Stated value
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| portfolio investment | Long-term investments that do not give the investors control over the investment
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| services account | Record of intangibles that are exchanged internationally
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| short term capital flows | Changes in international assets and liabilities with an original maturity of one year or less
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| special drawing right (SDR) | An international reserve asset established by the IMF; the unit of account for the IMF and other international organizations
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| trade balance | The balance on the merchandise account
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| Triffin paradox | The concept that a national currency that is also a reserve currency will eventually run a deficit, which eventually inspires a lack of confidence in the reserve currency and leads to a financial crisis
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| unilateral transfer | A transfer with no matched return flow, no reciprocity
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| World Bank | Institution that focuses on funding of development projects
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