You are advising a small country on whether to print its own money or to use the money of its larger neighbour. What are the costs and benefits of having your own national currency?
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You are advising a small country on whether to print its own money or to use the money of its larger neighbour. What are the costs and benefits of having your own national currency?
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- Why would a nation dollarize—that is, adopt another countrys currency instead of having its own?A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise indefinitely. Why not?You are advising a small country on whether to print its own money or to use the money of its larger neighbour. What are the costs and benefits of having your own national currency?.
- _______Refers to the market for national currencies of different countries in the world?why did the people of Germany not accept Mark as their currency in 1923?47. Every economy is striving hard to update and improve their paper currency to protect it from counterfeiters. Which government institutions are responsible for printing money? a. Trade Department b. Ministry of Finance c. Central bank d. Ministry of Coins
- The popularity of the leader of a nation can affect the value of their currency. If the President of the United States has a good popularity rating with the citizens of the United States, does that make the US dollar stronger or weaker? Why or why not?What backs the US dollar? Include the distinction between commodity and fiat money.Panama uses the USD as their official currency since 1903 because their own peso was highly volatile, subject to high and unstable inflation. True ☐False ☐Defend your answer
- The U.S. dollar is still considered the most traded and the most stable currency in the world. It is easily converted over to other currencies when trading and is also the official currency of several U.S. territories. However, a strong U.S. dollar has both advantages and disadvantages. One of the advantages that was already mentioned is that the conversion of the U.S. dollar over to other countries is fairly easy and grants it a greater degree of buying power for foreign products. This also makes foreign imports cheaper not to mention investors benefit when engaging in FDI. The disadvantages of a strong U.S. dollar is that it makes it more expensive for foreign countries to import products from the U.S., which negatively affects industries and business owners within that country as a result. It can even negatively affect the U.S. because those that conduct business internationally will technically earn less from foreign sales if their currency is not fully convertible. Overall, even…The U.S. dollar is still considered the most traded and the most stable currency in the world. It is easily converted over to other currencies when trading and is also the official currency of several U.S. territories. However, a strong U.S. dollar has both advantages and disadvantages. One of the advantages that was already mentioned is that the conversion of the U.S. dollar over to other countries is fairly easy and grants it a greater degree of buying power for foreign products. This also makes foreign imports cheaper not to mention investors benefit when engaging in FDI. The disadvantages of a strong U.S. dollar is that it makes it more expensive for foreign countries to import products from the U.S., which negatively affects industries and business owners within that country as a result. It can even negatively affect the U.S. because those that conduct business internationally will technically earn less from foreign sales if their currency is not fully convertible. Overall, even…142.) Currency (C) = 800 Reserves (R) = 400 Deposits (D) = 1600 What is the value of the currency-deposit ratio? 0.2 0.25 0.4 0.5
