how come currency changes in value?
In: Economics
Today 10 Canadians want to buy an American cellphone. 10 Americans want to buy Canadian maple syrup.
The next month only 5 Canadians want to buy a cellphone. Same 10 Americans want to buy maple syrup.
The price of the US dollar now drops because less people want it while the same number of people want the Canadian dollar. When less people want something, you have to lower the price.
Latest Answers