Multiple Choice Questions: A) Coinscurrency made up of? paper money c) Credit cards and money C) Gold and silver A) Ector the following is NOT a factor that can affect the foreign exchange rate? A) Economic B)Interest rates C) Political events D) The weather 3. What is the most widely used currency in international transactions? A) US dollar B) Euro C) Japanese Yen D)Bitcoin 4. What is Bitcoin? A) A digital currency decentralized on blockchain technology B) A government-issued currency C) A type of credit card D) A store of value 5. Which of the following is true about Bitcoin? A) It is not supported by any tangible assets or government B) It is supported by a government's tangible assets C) It is a stable and reliable currency D) It is not a high-risk investment 6. What is an exchange rate? A) The rate at which one currency can be exchanged for another B) The value of a currency relative to other currencies C) The market demand for a currency D) The frequency and magnitude of changes in the exchange rate 7. How is the value of Bitcoin determined? A) By market demand B) By its underlying tangible assets C) By the government that issues it D) By the value of other cryptocurrencies 8. How do economic conditions interest rates, and political events affect the exchange rate of a currency? A) They can increase demand for the currency,causing it to appreciate relative to other currencies B) They can decrease demand for the currency,causing it to depreciate relative to other currencies C) They have no effect on the exchange rate D) Both A and B

## Step1<br />The first question is about the composition of currency. The correct answer is gold and silver, as these are the primary materials used in the production of coins.<br /><br />## Step2<br />The second question asks about the factors that can affect the foreign exchange rate. The weather is not a factor that can affect the foreign exchange rate, as it does not have a direct impact on economic or political conditions.<br /><br />## Step3<br />The third question asks about the most widely used currency in international transactions. The US dollar is the most widely used currency in international transactions.<br /><br />## Step4<br />The fourth question asks about what Bitcoin is. Bitcoin is a digital currency decentralized on blockchain technology.<br /><br />## Step5<br />The fifth question asks about the truth about Bitcoin. Bitcoin is not supported by any tangible assets or government.<br /><br />## Step6<br />The sixth question asks about what an exchange rate is. An exchange rate is the rate at which one currency can be exchanged for another.<br /><br />## Step7<br />The seventh question asks about how the value of Bitcoin is determined. The value of Bitcoin is determined by market demand.<br /><br />## Step8<br />The eighth question asks about how economic conditions, interest rates, and political events affect the exchange rate of a currency. They can increase demand for the currency, causing it to appreciate relative to other currencies, or they can decrease demand for the currency, causing it to depreciate relative to other currencies.