Currency Exchange

Dina asked:


Which of the following best explains what happens to the exchange rate of a floating currency?

A. The exchange rate for that currency changes depending on the operations of the free market.
B. The exchange rate for that currency goes up and down with the price of gold.
C. The exchange rate for that currency is determined by changes in the value of the U.S. dollar.
D. The exchange rate for that currency increases or decreases depending on the size of the country’s GDP.

cidyah asked:


OK, we see that $1 US = $0.9 AUD etc and it keeps changing everyday. How is it actually determined and who decides what it should be? Serious replies only please.

amburr asked:


I have 100 Banco Central do Brasil dollars and I would like to exchange it for US money. I checked and it said that it is equal to $56 US dollars. Will it ever be worth more than $56 or could it possibly decrease in value? When does the the currency rate change? Thank you for your time. I really appreciate your explanations.

John asked:


Assuming the world interest rate remains the same at 3%, the increase in the budget surplus will lead to:

I. An increase in the demand for dollars
II. An increase in the supply of dollars
III. An increase in the quantity of net exports
IV. Appreciation of the dollar

A. I and IV only

B. I, II, III, and IV

C. II, III, and IV only

D. II and III only

Mu G asked:


If we’re talking in U.S dollars, How much would one dollar be in the U.K (in pounds)

Not all who wonder are lost… asked:


I would really appreciate a short discussion on this topic. Thank you all!

schadenfreude asked:


There’s much talk of the “strong Euro” against the “weak dollar”, etc., and what it all means. I’ve never been able to grasp the currency exchange concept very well. Does anyone know of a good website that explains it explicitly and thoroughly?

Craig asked:


For example, if the Canadian government were to decide not to provide national health care to its citizens, mandating that employers pay part or all of the premiums instead, what would happen to the value of the Canadian dollar, and, therefore, the competitiveness of Canadian exports to the US? My econ professor brought this up last week and I’ve been noodling over it ever since. Would this weaken or strengthen the Canadian dollar and why? Thanks much!

Craig asked:


For example, if the Canadian government were to decide not to provide national health care to its citizens, mandating that employers pay part or all of the premiums instead, what would happen to the value of the Canadian dollar, and, therefore, the competitiveness of Canadian exports to the US? My econ professor brought this up last week and I’ve been noodling over it ever since. Would this weaken or strengthen the Canadian dollar and why? Thanks much!

Allrighty asked:


Where do the currency exchange numbers come from? It’s not some guy setting it to certain price every day? It fluctuates in a matter of seconds? So what exactly calculates the number every second? Is it some kind of 1 supercomputer? Or how does it work?