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Question
The idea of the 'currency convertibility' as it is used by the economies today originated in which of the following ?
The idea of the 'currency convertibility' as it is used by the economies today originated in which of the following ?
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Solution
The correct option is C None of the above
Currency
convertibility is the ease
with which a country's currency can be converted into gold or another currency. Currency
convertibility is important
for international commerce as globally sourced goods must be paid for in an
agreed upon currency that may not be the buyer's domestic currency. The value of money is
determined by the demand for it, just like the value of goods and services.
There are three ways to measure the value of the dollar. The first is how much the dollar will buy in
foreign currencies. That's what the exchange rate measures.
Currency convertibility is the ease with which a country's currency can be converted into gold or another currency. Currency convertibility is important for international commerce as globally sourced goods must be paid for in an agreed upon currency that may not be the buyer's domestic currency. The value of money is determined by the demand for it, just like the value of goods and services. There are three ways to measure the value of the dollar. The first is how much the dollar will buy in foreign currencies. That's what the exchange rate measures.
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