What is Currency? Learn the basics of currency and exchange rates. Instructions: Watch the video "What is Currency?" by Money Instructor on YouTube then answer the following questions: Video Link https://www Lyoutube.com/watch?v=98U VBBrots 1. What is currency made up of? 2. What is an exchange rate and how is it determined? 3.What is Bitcoin and how does it differ from traditional currencies? 4. What are some factors that can affect the exchange rate of a currency? 5. What is the role of a central bank in managing a country's currency? 6. Can more than one country use the same currency? If so, give an example. Copyright 2023 Money Instructor r www moneyinstructo

1. Currency is made up of physical money, such as coins and paper notes, as well as digital or electronic money, such as bank balances and cryptocurrencies.<br />2. An exchange rate is the value of one currency in terms of another currency. It is determined by the supply and demand for a currency in the foreign exchange market. Factors such as interest rates, inflation, and political stability can affect the exchange rate.<br />3. Bitcoin is a type of cryptocurrency that is decentralized and operates on a technology called blockchain. It differs from traditional currencies in that it is not issued by any government or financial institution and transactions are recorded on a public ledger.<br />4. Factors that can affect the exchange rate of a currency include interest rates, inflation, political stability, economic performance, and speculation.<br />5. The role of a central bank in managing a country's currency is to control the money supply, set interest rates, and maintain the stability of the currency. They can also intervene in the foreign exchange market to stabilize the exchange rate.<br />6. Yes, more than one country can use the same currency. An example of this is the Euro, which is used by 19 of the 27 European Union countries.