Why is there a need for currency?

Why do nations need a system of currency exchange rates?

  • Answer:

    A system for exchanging currencies is used in international trade because a company in one nation will want to be paid in in currency that they use rather than one from a foreign nation.

Sofia Paredes at ChaCha Visit the source

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National currencies are vitally important to the way modern economies operate. They allow us to consistently express the value of an item across borders. We need exchange rates because one nation's currency is not always accepted in another.

Crystal Mann

National currencies are vitally important to the way modern economies operate. They allow us to consistently express the value of an item across borders. We need exchange rates because one nation's currency is not always accepted in another. - See more at: http://www.com/question/why-do-nations-need-a-system-of-currency-exchange-rates#sthash.TAwtMpxg.dpuf

Debra Billings

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