ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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you can purchase items in other countries.
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you can make money from other currencies.
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you can create a free trade agreement with that countries.
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you can create a market economy.
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Detailed explanation-1: -If a country experiences inflation, the prices of its exports increase, making them less attractive to foreigners. Inflation can also decrease domestic demand for domestic goods, leading a country’s importers to exchange their currency for foreign ones in order to buy cheaper goods from abroad.
Detailed explanation-2: -exchange, international exchange also called foreign exchange, respectively, any payment made by one country to another and the market in which national currencies are bought and sold by those who require them for such payments.
Detailed explanation-3: -So, which currency is mainly used for international trade? Obviously, this has to be the US dollar. Several countries around the world maintain their own official rates of exchange through the purchase and sale of the US dollar. Countries hold dollars as the primary currency of their reserve quota.
Detailed explanation-4: -The foreign exchange markets play a critical role in facilitating cross-border trade, investment, and financial transactions. These markets allow firms making transactions in foreign currencies to convert the currencies or deposits they have into the currencies or deposits they want.