Who decides the value of a dollar relative to a euro? Why do exchange rates change frequently?
In: Economics
Casually, by accident, based on what people need at the time they make the deal. Only when people surveil the average of transactions, track it, publish it, and then banks use that to determine their deals do we get what we know as a formal exchange rate.
No different than knowing an apple is worth 2 granola bars in the school cafeteria.
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