Question

How does the system of currency exchange encourage the international trading of goods and services? A. Currency exchange forces all countries to price their goods and services in U.S. dollars. B. Currency exchange makes life easier for travelers from all over the world. C. Currency exchange allows traders with different currencies to exchange goods and services. D. Currency exchange makes all money equal, regardless of the country it comes from.

Answer 1

One way in which the system of currency exchange encourages the international trading of goods and services is that "C. Currency exchange allows traders with different currencies to exchange goods and services," since there are almost always different rates involved.

Answer 2

The correct answer is C. The system of currency exchange encourages the international trading of goods and services by allowing traders with different currencies to exchange goods and services.

Step-by-step explanation:

The foreign exchange market is a global and decentralized market in which currencies are traded. This market was born with the objective of facilitating the monetary flow derived from international trade. It is by far the largest financial market in the world, reaching a daily transaction volume of around five billion US dollars, more than all the other stock markets on the planet combined. Its objective is the facilitation of international operations for the sale of goods, services and financial assets.