Exchange Rates
Exchange Rate is the value of a nation’s currency versus that of another. For example – how many US dollars does it take to buy one Euro?
Globalization is the foundation upon which our modern world is built. Countries have taken giant leaps from underdevelopment to becoming advanced economies through one single economic strategy – Exports! And exchange rates are central to that strategy. Countries like South Korea, Thailand recorded massive economic development by exporting manufactured goods to the world. And they could do so because their currencies were cheaper relative to the countries that were buying from them.
Did you know even the Euro was created in part because the Deutsche Mark was way too strong and German exports could not have been competitive in Deutsche Marks!
Results
Super! You know your basics well !
Better luck next time!
#1. Which country was the last to leave the gold standard?
Switzerland left the gold standard in 1999 and was the last country to do so. In 2014, Switzerland held a referendum on whether to increase gold holdings in its reserves from 7% to 20%. The referendum was overwhelmingly rejected with 78% voting against expanding the gold composition to 20%.
#2. As of 2022, which currency was the most valuable currency in the world?
As of January 2022, the Kuwaiti Dinar was valued at more than 3.31 US Dollars.
#3. Which one of the following countries does NOT use “Rupee” as the name of their currency?
Although it is not the same monetary unit, many countries use the term “Rupee”, including India, Pakistan, Mauritius, Nepal, and Seychelles.
#4. The QUID is a currency made for inter-planetary travelers. True or False?
The QuasiUniversal Intergalactic Denomination, or QUID, is the new currency of inter-planetary travellers! It was designed for the foreign exchange company Travelex by scientists from Britain’s National Space Centre and the University of Leicester.
The design intent is that QUIDs must withstand the rigors of space travel – no sharp edges and no chemicals that could hurt space tourists!
#5. How many of the 27 European Union countries do not use the Euro?
Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania and Sweden have all chosen to keep their own currencies and not use the Euro instead!
#6. Which one of these countries use two currencies at the same time?
Since Lesotho is completely surrounded by South Africa, it is no surprise that it makes use of both the Lesotho Loti (LSL) and the South African Rand (ZAR).
#7. Can you spot a fake? Which one of the following currencies doesn’t exist?
The Metical is Mozambique’s official currency, the Ngultrum is Bhutan’s, and the Ringgit is Malaysia’s.
#8. What is another term for competitive devaluation?
The term “currency war” was coined in 2010 by former Brazilian Finance Minister Guido Mantega, in the aftermath of the global financial crisis.
#9. Which currency war is thought to have contributed to the Great Depression? The currency war between …
Britain, France and the United States were competing in a cycle of competitive devaluation during the late 1920’s. In 1936 they agreed to stabilize their currencies and ended their currency war.
#10. Why does the Bank of England still have an estimated 400,000 bars of gold, even though Britain left the Gold Standard in 1931? Because …
Of the estimated £194 billion’s worth of gold inside the Bank of England’s vault, only about £10 billion belongs to the United Kingdom. The rest belongs to the Bank’s various customers, other global central banks, etc
