How Are Exchange Rates Determined?
For example, if you’re from the United States and want to go on a vacation somewhere in Europe, how much will it cost you? You might be surprised at how much it can cost. If you look up the conversion rate online and see that €1 is equal to roughly $1.20, that doesn’t mean that a euro is worth $1.20. The exchange rate between euros and U.S. dollars has an effect on how much each of those currencies is worth in terms of the other one.
Understanding how exchange rates work can help you plan your vacation more effectively by understanding which currency might be more beneficial for you to use while also understanding what factors influence exchange rates so that the next time you visit another country, you can do it at a better time to save money. This article will help explain the ins an...