Question

What is a problem with exchanging currency?

A) People make more money by trading currency.


B) Banks do not like to exchange their money for other currencies.


C) Most people want to use American dollars to trade.


D) It costs more to do business because banks charge fees for exchanges.


Why is it important for nations to have a system to convert from one currency to another?


A) This makes it possible to buy and sell goods between nations with different types of money.


B) The dollar is the most valuable currency in the world today.


C) Converting to different currencies makes goods cost less.


D) Banks are not able to handle different kinds of currencies.

Answer 1

I believe it’s A for both

Answer 2

A

Step-by-step explanation:

Currency exchange rates can impact merchandise trade, economic growth, capital flows, inflation and interest rates. Examples of large currency moves impacting financial markets include the Asian Financial Crisis and the unwinding of the Japanese yen carry trade.