When studying abroad last year, Thomas found that his U.S. dollars didn't stretch as far as he had expected. Each time he exchan

Question

3 years ago

13

ged his dollars for euros, he had to give up more dollars in exchange for fewer euros. The exchange rate indicates

1 answer:

Andrei [34K] · Answer 1 · 2022-01-11T22:45:18+03:00

Answer:

The euro has gained strength against the dollar.

Explanation:

Exchange rate is a measure of the value of one countrie's currency compared with another. For example how many dollars can be exchanged for a euro.

Most exchange rates are free floating, meaning their value is determined by market forces (demand and supply).

Some countries however peg their currency value.

So in this scenario Thomas is giving more dollars for fewer euros because the euro has more value.