Question

Why is system of currency exchange necessary for international trade?

A. Nearly all world currencies are worthless on the world market.
B. Those buying goods on the world market only accepted in gold and silver.
C. Most goods bought on the international market must be bought and paid for using United States dollars only.
D. There must be a way to pay for goods purchased from countries with different types of currencies due to Nationalism.
Thank you for any answer that you provide! :D

Answer 1

The answer would be D.

Answer 2

Answer: D. There must be a way to pay for goods purchased from countries with different types of currencies due to Nationalism.

The reason why we need a system of currency exchange in order to conduct international trade is because different countries use different types of currency. They do so because national sovereignty allows each nation to establish its own currency. However, we need a system to pay for goods that are purchased from other countries. This is why the currency exchange system allows us to conduct international trade.