If I have 100 USD and I go to a bank somewhere in Europe and ask for an exchange in euros, how do they just accept it?
Like here’s my paper money that’s technically worthless to you, now give me your paper money that’s valuable to you.
In: Economics
Your paper money ISNT worthless to the bank. They turn around and wait for a European to come in and say “I am going to America I need some dollars please.” And then they give that European your dollars.
And, the bank collects a small fee from the both of you, making money off the transaction.
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