The need for the transaction of international currency.

Question

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Answer 1

Question

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

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corospond to this message. Gross Domestic Product (GDP) represents the total value of all goods and services produced by a country. The news reporter shows excitement because rising GDP signifies positive economic performance. Consumer spending has increased while businesses expand and new job opportunities become available. If the GDP rises, your delivery business will likely handle more packages as consumer purchasing increases. The increase in business activity will lead to more opportunities for your company to generate higher profits. You may need to take action by hiring additional staff and purchasing extra delivery vehicles or finding ways to improve your operation speed and efficiency to meet increased demand.

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Answer 2

Question

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

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Answer 3

Question

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Answer 6

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Answer 7

Chapter 39, Problem 1DQ

To determine

The need for the transaction of international currency.

Answer 8

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.