Currencies and Exchange Rates

Question 1

Which factor plays a role in establishing the value of a country’s currency?

Revolt · Accepted Answer

supply and demand

Question 2

It’s important for countries to exchange currencies so that goods from other nations can be

Revolt · Accepted Answer

traded.

Question 3

What is an example of a country that makes use of another nation’s currency?

Revolt · Accepted Answer

Panama

Question 4

Which of these statements most accurately describes currencies in North America?

Revolt · Accepted Answer

Each country in North America uses its own currency.

Question 5

Who decides which currency each country in the world uses?

Revolt · Accepted Answer

each individual country

Question 6

The chart below shows an exchange rate table.

Revolt · Accepted Answer

119

Question 7

Which statements accurately describe a country’s currency? Select all that apply.The currency is easily divisible.The currency can be used in any other country.The currency has a value that can change.The currency has denominations.The currency has a value that must stay the same.

Revolt · Accepted Answer

The currency is easily divisible.; The currency has a value that can change.; The currency has denominations.

Question 8

The chart below shows an exchange rate table.

Revolt · Accepted Answer

It would look different because exchange rate tables change constantly.

Question 9

The best time for Americans to import French cheese is when they can

Revolt · Accepted Answer

buy the most euros for US dollars.

Question 10

If investors can earn 10 percent interest in an account in Mexico but just 3 percent in the United States, those investors will most likely

Revolt · Accepted Answer

want to invest in Mexico, which will cause the peso to appreciate.

Currencies and Exchange Rates Answers

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