Why is the value of the currency different for different countries and how is it determined?
by on Wednesday, April 3rd, 2013 | 5 Comments
Question by Aquaadventure: Why is the value of the currency different for different countries and how is it determined?
Best answer:
Answer by mark101112
BY…. THE … NATIONAL…. BANKS…!
Look at Yahoo Finance… and their Currency Converter! YOU will see a Daily Change in the Money Rate!
Thanks, RR
Know better? Leave your own answer in the comments!
It’s determined by the forex market which deals with foreign currency. It changes everyday dependant on analysis of countries financial situation and their future potential
Its Determined By the Countries amount of money they Make. more money = Less Value.
This is kind of like asking “How do you build a house?” I suggest a course in economics at your local college or finding a book that will explain it in lay terms. good luck peace
It is depends up on the economic growth and gold standards of that country.
The difference in the values of currencies among countries is called the foreign exchange rate (also “forex” rate, “FX” rate or exchange rates). Q1) The difference in values will tend to reflect the relative economic conditions of the countries.
Q2) For most advanced economies the rate is determined by the open marketplace (meaning the relative supply & demand for each currency).
However, some countries have a fixed-rate policy, meaning the value is set by policy and not allowed to fluctuate in the open market. (Noteworthy: China is switching from a fixed rate and slowly allowing the currency value to change).
Good Luck!