lets say
$1 US Dollar = $53 Phil Peso = $106 Jap Yen = $7 China RMB
(i know that we once used gold standard. it is based on how we valued gold itself and its inherent value and make the currency we have equivalent to our stock of gold in that country.)
(gold itself is hard to counterfeit and it is valuable in the ancient times as well as today that is why it was used. but that created a ceiling.)
(i understand that money is what we use to trade goods for and that it is not equivalent to the value of the goods itself.)
thus i ask of the current currencywho determines that it is valuated that way?(I know that supply and demand of the currency affects it valuation.I know how we view that currency itself determines its value.)how does printing affect its value? does everybody know there is too much paper money of it in circulation? how do we know it is new cash? what if i just print along return of old money? how will they know that i added more?like the Greek Economy. its currency used to have high value. how did it devalue so fast? its not like the country was not functioning. what determined its downfall?(I know that they printed a lot of money that also affected its value. but that was not the main cause.)how does companies like Bloomberg determine it by the minute? not like they know every transaction we had of that currency. why does it suddenly dip down? or up?
Currency how does it work and evaluated?
2019-09-28 2:10 pm
回答 (3)
2019-09-29 12:15 am
✔ 最佳答案
The answer is simple. Currency is worth what the holders and users of that currency believe it to be worth. When you sell an item for, say, $100 and you receive that as a $100 bill, you believe that the legal tender received for that item is actually worth $100. We call that value the intrinsic value of the $100 bill; the 100 on the bill is its face value.And you trust others will also believe that as well when you go to buy stuff with that same money. Which is to say someone is willing to give you what you consider to be $100 worth of stuff for that piece of paper marked $100 you have and, probably, some words that claim the paper is legal tender.
That the currency is marked "legal tender" or similar is also a factor we consider when determining the value of that $100 bill. It means the bill has the backing and support of whatever nation and government issued that money.
In the US we have the Treasury Department and Federal Reserve working together to ensure that the $100 bill remains reasonably stable at around $100 value to everyone. They each have tools of the trade for doing that.
The Treasury can print and distribute more $100 bills for example to lower the intrinsic value if it goes too high. The Fed can adjust the prime interest rates up or down to affect its value as well. Doesn't always work as you probably realize.
In capitalist nations where the market sets the intrinsic values, inflation is a common characteristic. It's particularly bad when the government is incapable of controlling it through economic means...like currently in Venezuela.
2019-09-28 2:12 pm
No essay questions please.
2019-09-28 3:16 pm
It multiplies by each indian within the area.
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