Why do countries have different exchange rates, and what about the economy makes them go up or down?

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Why do countries have different exchange rates, and what about the economy makes them go up or down?

In: Economics

2 Answers

Anonymous 0 Comments

Your apples are delicious, your neighbor has apples that are less delicious. When you trade apples with your neighbor they have to give you more apples to compensate for their flavor.

Anonymous 0 Comments

Goods and services. How much a person can purchase with their country’s money. I.e. on the US how much of a product can we buy with a single US dollar. Then we compare how much we can buy with a Euro or GBP, Yen, Rupee, Won, etc. It’s all about what it’s worth and/or if its backed by something like gold.