Frequently Asked Questions (FAQ) : Economics Association of Zambia (EAZ)

Question: When was EAZ established?
Answer: 1962 as the Lusaka Economics Club. In 1985, the Association was registered as a Non Governmental Organisation (under the Societies Act, Cap. 105)

Question: How many chapters has EAZ?
Answer: Five.

Question: what is currency appreciation?
Answer: An increase in the value of one currency relative to another currency. ( Appreciation is the term used to describe the increase in value a currency experiences due to market factors. Generally appreciation is caused when demand outweighs supply, causing scarcity in the market. Since the buyers in this case place a higher value on the currency, it appreciates in value and becomes more expensive to trade.)

Question: what is currency devaluation?
Answer: The reduction of the value of a nations currency relative to the currencies of other nations.

Question: What is Deflation?
Answer: A persistant price decline of goods and services. (Deflation usually occurs during a recession and is characterised by supply exceeding demand, and while there is increased buying power, the amount of currency in circulation is greatly reduced.)

Question: What is Economic Growth?
Answer: An increase in the production of goods and services over a given period. Nominal growth is increase including changes in prices while real growth is the increase excluding changes in prices.

Question: What is Economic Policy?
Answer: A government policy for maintaining economic growth and tax revenues.

Question: What is Gross Domestic Product (GDP)?
Answer: The total kwacha value of all goods and services produced by all people within the boundaries of a country during a one year period. GDP per person is the simplest overall measure of income in a country.

Question: What is the best method of analysis for forex trading?
Answer: Forex analysis is used by the retail forex day trader to determine whether to buy or sell a currency pair at any one time. Forex analysis could be technical in nature, using charting tools, or fundamental in nature, using economic indicators and/or news based events. The day trader's currency trading system use analysis that create buy or sell decisions when they point in the same direction.

Question: How do I use an arbitrage strategy in forex trading?
Answer: Forex arbitrage is a risk-free trading strategy that allows retail forex traders to make a profit with no open currency exposure. The strategy involves acting fast on opportunities presented by pricing inefficiencies, while they exist. This type of arbitrage trading involves the buying and selling of different currency pairs to exploit any inefficiency of pricing