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it is called deflation

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9y ago
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Q: What is it called when the value of currency goes down called?
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What is price based on?

supply and demand. if the supply is up, the price is down. if the demand is up, the price goes up. Addition... It is also based on the value of the currency being used to purchase the thing. When the value of the currency goes down, the price goes up.


What best explains what happens when a currency is pegged to the us dollar?

The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. ALSO Pegging a currency to the U.S. dollar gives that currency the same stability as the U.S. dollar, keeping its exchange rate from fluctuating too wildly.


What is it called when the value of money goes down?

inflation


When the demand for a country's currency goes up it leads to this change in the currency?

The value of the currency increases in proportion to it's scarcity and desireability.


What happens when a currency is pegged to the U.S dollar?

The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. Pegging a currency to the U.S. dollar gives that currency the same stability as the U.S. dollar, keeping its exchange rate from fluctuating too wildly.


When the value of a country's currency goes up compared to another country's currency that is considered a?

First of all - your punctuation. You need a comma after the second "currency" so as not to confuse whether 'value' or 'currency' is the point - "When the value of a country's currency goes up compared to another country's currency, that is considered a...?" Bad thing, as the cost of goods and services of 'Currency A' go up when compared to 'Currency B.' People will want things priced in Currency B, perceiving them cheaper than Currency A goods and services.


When there is no gold what does the government back its currency with?

Promises and happy thoughts. The value is pegged to the GDP of the country that makes the promise of value so when that country's GDP goes down and its gov't prints more money, the existing value drops.


What are the benefits of commodity investments?

There are a few benefits that are advantageous for those investing in commodities. For investors looking to diversify their portfolios, having commodities in your portfolios adds diversity. Commodities tend to hold commodity value if the currency value goes down. In other words, if you invest in gold and the value of the currency goes down, the value of gold still holds because the value based on the weight or asset of the gold. Since commodities are based on consumer demands, investors' money are less at risk during inflation because as the demand for commodities like oil and gold go up, so does the price on those commodities.


What happens when the value of the us dollar goes down?

if the value of dollar goes down, there are big effect to the ofw, for example the remittaces of the ofw when they sent the dollar here in Philippines the value of the dollar is depreciated.


What system did decimal currency replace in Australia?

it replaced all this fun stuff called the currency ny state and a commitment to australia i know this is crazy but brother this is how it goes were never gonna get stopped never gonna get knocked down cause this is us :P


If a company does well the value of a share goes down?

false!


If a company does well the value of a share goes down.?

false!