What is Currency and Exchange Rate? for Kids

What is a currency?

• type of money used at certain businesses.

• type of money issued by a country

What is the currency of the United States?

• the euro

• the dollar

• the peso

Sometimes a group of countries will all use the same currency. For example many countries in Europe use the ...

• Dollar

• Pound

• Euro

Sometimes a group of counties will all use the same currency. For example, many countries in Europe all use the 

• Dollar

• Euro

What is the exchange rate?

• The number of times a currency is exchanged in a years time.

• The amount you get when you exchange one currency for another.

What is the exchange rate?

• A mathematical formula to determine how much a currency is worth.

• The amount you get when you trade one currency for another.

Who determines the value of the currency in a fixed exchange rate system?

• supply and demand

• government

Who determines the value of a currency in a fixed exchange rate system?

• supply and demand

• government

Most countries have a flexible exchange rate. With a "flexible exchange rate", the value of their currency is determined by ...

• interest rates and economic progress

• the government

   

Most countries have a flexible exchange rate. The value of the currency is based on 

• interest rates and the economic well being of the country.

• the government.