This interaction determines market prices and thereby allocates scarce goods and services. An exchange rate is the price of one nation s currency in terms of another nation s currency. Like other prices, exchange rates are determined by the forces of supply and demand. Foreign exchange markets allocate international currencies. Standard 11 - Money makes it easier to trade, borrow, save, invest, and compare the value of goods and services.
Money is anything widely accepted as final payment for goods and services.
Most countries create their own currency for use as money. As they experience the need to exchange currencies to purchase foreign goods, they learn about the difference between the domestic and international values of a currency and how factors of supply and demand work to set international exchange rates. Copies of student reading. Distribute two or three riyal notes to each student. Ask them if what you have distributed is money.