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Essay

Foreign Exchange Market/Gold Standard Summary

Essay specific features

 

Issue:

Business

 

Written by:

Alan B

 

Date added:

February 20, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1014

 

Was viewed:

5154 times

 

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Essay content:

There are four major currency pairs that are generally used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. The FOREX will usually display them in this form: EUR/USD, USD/JPY, GBP/USD, and USD/CHF...
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The US Dollar is the most valuable of currencies because it is accepted all over the world. If you were to from Canada and were going to purchase crops from Hungary it is acceptable to pay with US Dollars or Euros instead of Canadian Dollars, even though US has nothing to do with the transaction. The determination of the foreign exchange rate as explained by the Federal Reserve Bank of New York, “At the heart of this complex market are the same forces of demand and supply that determine the prices of goods and services in any free market...
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