ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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minerals
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currency
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goods
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services
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Detailed explanation-1: -Money is some item of value that allows people and institutions to engage in transactions that result in an exchange of goods or services.
Detailed explanation-2: -A medium of exchange is anything that is used to determine value during the exchange of goods and services.
Detailed explanation-3: -Bartering is the exchange of goods and services between two or more parties without the use of money. It is the oldest form of commerce.
Detailed explanation-4: -The purchasing power of currency is the quantity of goods and services that can be bought with a monetary unit.
Detailed explanation-5: -Summary. Currency value is determined by aggregate supply and demand. Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply. The most common method to value currency is through exchange rates.