GENERAL KNOWLEDGE

GK

WORLD GEOGRAPHY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
All countries use the same money
A
true
B
false
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -In a floating system, the rules of supply and demand govern a foreign currency’s price. Therefore, an increase in the amount of money will make the denomination cheaper for foreign investors. And an increase in demand will strengthen the currency (make it more expensive).

Detailed explanation-2: -The entire world doesn’t have a single currency because it is too diverse to be regulated by a single economic system. A single currency would only function if all the nations’ economic metrics are identical.

Detailed explanation-3: -A single currency is when a number of countries join their currencies together into one single currency. The main example of this is the introduction of the Euro in the European Union.

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