ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Euro
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Mexican peso
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Japanese yen
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US dollar
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Detailed explanation-1: -The Mexican peso had another solid year in 2022, closing at 19.50 to the US dollar, posting a 5.1% gain in the 12 months to December 31. The currency also demonstrated resilience and stability, with the exchange rate fluctuating between 19 and 21.50 pesos to the dollar through 2022.
Detailed explanation-2: -Soft currency is an unstable form of currency that is unconvertable, fluctuates erratically, and/or depreciates against other currencies.
Detailed explanation-3: -The U.S. dollar and the British pound are good examples of hard currencies. A currency with a value that fluctuates as a result of the country’s political or economic uncertainty. As a result of the of this currency’s instability, foreign exchange dealers tend to avoid it. It is also known as a “weak currency”.