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Why is the sell price always higher than the buy price when exchanging currency?
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How can any currency rise in value?
Currencies are bought and sold on the open market - just like other commodities. The more popular a currency is - the higher the selling price will be.
What is the country's exchange rate based on?
The country\'s exchange rate is based on supply and demand for its currency. When a larger amount of currency is in demand, the money exchanges at a higher price.
What best explains the difference between a fixed currency and a floating currency?
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
How do exchange rate affect businesses?
The local economy will be higher raising on inflation and the value of currency of the price will be in intrest rate as decreasing.
How does weak US dollar influence the price of crude oil?
Dollar is international currency and when the dollar is weak countries would be able to purchase more quantity of oil with lesser currency...however this is only when OPEC keep the prices stable Crude oil is mainly traded in US dollars, and when the US dollar weakens the crude oil market participants (speculators, producers, refineries, etc.) push the price of crude higher on the expectations that oil producers are entitled to at least the same prices as before in their own currencies, after exchanging US dollars into their currency. In economics such relationships are explained by Purchasing Power Parity theory.
How is the currency rate decide?
The currencies rate is decided by the supply and demand of the market. The higher the demand, the higher the price and vice versa.
What is locational arbitrage?
Locational arbitrage is possible when a bank's buying price (bid price) is higher than another bank's selling price (ask price) for the same currency.
How can any currency rise in value?
Currencies are bought and sold on the open market - just like other commodities. The more popular a currency is - the higher the selling price will be.
How much is one currency?
There is no price for one currency. Currencies are traded in pairs and the price is for one currency in terms of the other currency.
What is the country's exchange rate based on?
The country\'s exchange rate is based on supply and demand for its currency. When a larger amount of currency is in demand, the money exchanges at a higher price.
What best explains the difference between a fixed currency and a floating currency?
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
How do exchange rate affect businesses?
The local economy will be higher raising on inflation and the value of currency of the price will be in intrest rate as decreasing.
Where can I find a calculator that offers additional information on fractional currency?
A calculator that offers additional information on fractional currency can be found at ebay.com. There some many to choose from just be the higher and it your for a great price.
How does weak US dollar influence the price of crude oil?
Dollar is international currency and when the dollar is weak countries would be able to purchase more quantity of oil with lesser currency...however this is only when OPEC keep the prices stable Crude oil is mainly traded in US dollars, and when the US dollar weakens the crude oil market participants (speculators, producers, refineries, etc.) push the price of crude higher on the expectations that oil producers are entitled to at least the same prices as before in their own currencies, after exchanging US dollars into their currency. In economics such relationships are explained by Purchasing Power Parity theory.
What is one way supply and demand can affect the price of a good?
WELL, by exchanging money
You want to know How much a lemon costs at Tescos?
The price always changes, it won't stay the same. Which country, currency etc. are you talking about?
What is it called when it takes more money to buy the same goods?
A price increase caused by a larger currency supply is called inflation. If the supply of the goods remains the same, the result is a higher price, in effect devaluing the money.
